AIA’s monthly Architecture Billings Index showed a continued rise in May, coming in at 58.5, which is 0.6 point higher than April’s ABI of 57.9. This marks the ABI’s fourth positive month since it dipped below 50 in February 2020, and one of the highest scores in the index’s 25-year history. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
“Despite ballooning costs for construction materials and delivery delays, design activity is roaring back as more and more places reopen,” said AIA chief economist Kermit Baker, Hon. AIA, in the Institute’s press release. “However, concern over rising inflation and ongoing supply chain disruptions, as well as emerging labor shortages, could dampen the emerging construction recovery.” The design contracts score reached its second consecutive record-high with a score of of 63.2, rising 1.5 points from April’s score of 61.7. New project inquiries, with a score of 69.2, remained near April’s record-high score of 70.8.
The month-to-month change in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—largely improved in May. Three out of four regions showed increased scores, and all four regions reported scores above the threshold of 50. Billings in the Midwest rose 2.8 points to a score of 63.4, while billings in the West rose 5.0 points to a score of 57.4. Billings in the South rose 0.7 point to a score of 59.0, and billings in the Northeast decreased 0.8 point to a score of 54.2.
Billings scores increased again in all four individual industry sectors with all four sectors also reporting scores above the threshold of 50.0. The commercial/industrial sector rose 1.5 points to a score of 60.6; the institutional sector rose 0.4 point to a score of 57.1. The multifamily residential score rose 2.6 points to a score of 59.5; the mixed practice sector rose 2.9 points to a score of 57.9. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.
