Eight Straight Months of Growing Architectural Billings

It has been a couple of months since my last post, but there is good news to spread: The Architectural Billing Index reported by the American Institute of Architects increased last month from 52 to 52.8 which marks its eighth straight month of increases. Project Inquiries came in at 59.3, up from 56.7 in April, and the Design Contracts Index increased from 50.1 to 53.3 in May. As a reminder, any value greater than 50 means that architecture billings are increasing; conversely, any value less than 50 means billings are decreasing. The ABI is a leading indicator of commercial building construction by approximately nine to 12 months.

Here's is the regional breakdown for May 2018:

• West: 51.9 (down from April's 55.1 but still strong)
• Northeast: 50.6 (up from April's 50.3 figure)
• South: 55 (by my count, May marks the 71st straight month of growing ABI for the South)
• Midwest: 50.2 (up from April's 49.6 retreat in billings)

Four for four...Not too shabby, America!

Sector Averages for May 2018:

• Multi-family Residential: 52.1 (up from 50.7 in April and a 13 month streak in increases)
• Commercial/Industrial: 53.6 (versus 52.7 in April)
• Mixed Practice: 47.9 (down from 50.6 and our only declining subcategory)
• Institutional: 54.3 (up from 52 the previous month and the 18th straight month of gains)

All in all, very positive news. Not to be Debbie Downer, there are headwinds that can very easily slow the AEC industry (lack of labor, high material prices, etc.), but we can enjoy this data as a great way to start the summer.