January 23, 2006—The American Institute of Architects (AIA) reported that billings at US architecture firms were positive every month in 2005 for the first time since 2000, pointing toward 2006 being the best year for nonresidential construction in six years.
With construction accounting for nine percent of GDP, increased nonresidential activity will ease the effects of a projected slowdown in the residential market. The Architecture Billings Index (ABI), a leading economic indicator of nonresidential construction activity, had a rating of 50.4 in December 2005 (any score above 50 indicates a positive score), compared to 58.4 for November 2005 and 47.8 for December 2004.
“Considering the sluggish consumer spending coupled with the softening residential sector, nonresidential construction should be viewed as a key driver for the overall economy in 2006,” said AIA chief economist Kermit Baker, PhD, Hon. AIA. “The nonresidential upturn should continue into 2007 and can be attributed to pent up demand for new projects that werent able to be undertaken in recent years.”
For more information, visit the AIA Web site.
