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:
Sector Averages for May 2018:
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.