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Architectural Billings Index Turns Positive in May07-01-14 | News
Architectural Billings Index Turns Positive in May





The Architecture Billings Index (ABI) from the American Institute of Architects turned positive in May after consecutive months of negative reports. The metric reached a score of 52.6, a three-point jump from April. Index scores above 50 indicate growth in billings.
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The American Institute of Architects' (AIA) index measuring firm billings returned to positive territory in May after consecutive months of decreasing demand for design services, according to a June 18 report. The Architectural Billings Index, an indicator of future nonresidential construction spending, was 52.6 in May, up sharply from a mark of 49.6 in April.

The ABI score reflects an increase in design activity, as any score above 50 indicates an increase in billings. The new projects inquiry index was 63.2, up from the reading of 59.1 the previous month. A new index component tracking design contract trends at architecture firms, expected to indicate the direction of future architecture billings, reached 52.5 in May.

"Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness," said AIA chief economist Kermit Baker. "Overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the
coming months."

The four regional ABI averages, which are measured on a three-month moving average, were split. An increase in the South improved that region's score to 58.1, and the Midwest climbed to 51.3. The Northeast's score was 47.6 in May, and the West declined two points to an index score of 46.9.

Billing averages by market sector, also measured on a three-month average, included multi-family residential firms at 58.2, commercial/industrial companies at 53.6, mixed practice firms at 50.4 and institutional
firms at 47.3.








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