WASHINGTON — Paced by continued demand for projects such as new education and health care facilities, public safety, and government buildings, the Architecture Billings Index (ABI) increased in June following fluctuations earlier this year. A leading economic indicator of construction activity, the American Institute of Architects (AIA) reported the June ABI score was 55.7, up substantially from a mark of 51.9 in May. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up from a reading of 61.5 the previous month.

“The June numbers are likely showing some catch-up from slow growth earlier this year. This is the first month in 2015 that all regions are reporting positive business conditions and, aside from the multifamily housing sector, all design project categories appear to be in good shape,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The demand for new apartments and condominiums may have crested with index scores going down each month this year and reaching the lowest point since 2011.”

The regional averages were the Midwest at 57.2, South at 54.9, West at 50.7, and Northeast at 50.4.

The sector index breakdown was institutional at 59.1, mixed practice at 54.7, commercial/industrial at 51.6, and multifamily residential at 47.

For more information, visit www.aia.org.

Publication date: 8/10/2015

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!