September 22, 2006—After hovering around the no growth mark for the past three months, the Architecture Billings Index (ABI) jumped in August to its highest mark since July 2005.
The American Institute of Architects (AIA) reported the August ABI rating was 59.5 (any score above 50 indicates an increase in billings), a substantial rise from the 51.8 mark in July.
Demand for commercial / industrial projects continues to lead the way for increased billings, along with architecture firms on the East and West coast reporting a significant upturn in business, says the AIA.
Based on the approximate six to nine month lag time between architecture billings and construction spending, the latest figures are very encouraging for the overall economy because they suggest a strong outlook in the commercial construction market well into 2007, says AIA.
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. For more information, see the AIA Web site.
