Demand for design services, as measured by the Architecture Billings Index (ABI), grew again in June. The overall ABI of 53.3 indicates the strongest rate of growth in billings since last September. Firms also report 3 months of strong growth in the number of new design contracts executed.
Three of the four regions reported growth in billings. The Midwest region (56.3) reported the highest rate of growth in June, and the South region (53.9) continued a sustained and steady period of growth that began in July 2012. The troubled Northeast region (51.1) also saw growth in billings for the first time since September of last year. Only the West region (48.7) reported a decline in billings in June.
For the first time since October 2013, all three industry sectors reported growth in billings. Residential construction (57.7), which has been in a growth phase for a couple of years, continues to lead the way. The institutional sector (50.2) reported its first month of growth since October of last year, and the commercial and industrial sector (53.1) reported its third consecutive month of growth in billings.
As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12-month lag time between architecture billings and construction spending.
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Dan
Phone: 708.293.5500
Email: dan@zeiler.com
Source: www.irmi.com