Architecture Billings Index Surges Nearly Three Points
After three consecutive months of modest growth, the Architecture
Billings Index (ABI), an economic indicator of construction activity,
revealed a spike in design activity. The American Institute of Architects
(AIA) reported the May ABI was 55.0 (any score above 50 indicates
an increase in billings), up from the 52.6 mark in April. With an
approximate nine to twelve month lag time between architecture billings
and construction spending, the forecast for the nonresidential construction
market remains favorable throughout 2007 and into early 2008.
"This is second highest mark of the year behind January's score
of 57.9," says AIA chief economist Kermit Baker, PhD, Hon. AIA.
"Activity in the West is accelerating rapidly and all nonresidential
construction sectors are experiencing an extended upturn."
The ABI reports the ABI in the West at 58.0, 53.6 in the Northeast,
53.3 in the South and 51.8 for the Midwest.
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