WASHINGTON — The Architecture Billings Index (ABI) remained positive again in June after the first decline in 10 months in April. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI score was 51.6, down from a mark of 52.9 in May. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 62.6, up sharply from the reading of 59.1 the previous month.

“With steady demand for design work in all major nonresidential building categories, the construction sector seems to be stabilizing,” said AIA’s chief economist, Kermit Baker, PhD, Hon. AIA. “Threats to a sustained recovery include construction costs and labor availability, inability to access financing for real estate projects, and possible adverse effects in the coming months from sequestration and the looming federal debt ceiling debate.”

The regional scores were Northeast at 55.6, South at 54.8, West at 51.2, and Midwest at 48.3.

The sector index breakdown was commercial/industrial at 54.7, multifamily residential at 54.0, mixed practice at 52.4, and institutional at 51.8.

For more information, visit www.aia.org.

Publication date: 8/5/2013

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