As reported by the AIA, this month's Architecture Billings Index (ABI) has shown a slight reduction in construction growth in October, dropping by 0.6 points from September's mark of 53.7, but still in solid positive territory at 53.1. The Project Inquiries Index also dropped for the third straight month, falling to 58.5.
“Allowing for the possibility of occasional and minor backsliding, we expect healthy business conditions for the design and construction industry to persist moving into next year,” said AIA Chief Economist Kermit Baker. “One area of note is that the multi-family project sector has come around the last two months after trending down for the better part of the year.”
Regional Averages
- South (56.2)
- West (54.4)
- Midwest (52.6)
- Northeast (49.2)
Sector Index Breakdown
- Multi-family residential (52.5)
- Mixed practice (54.9)
- Commercial / Industrial (55.1)
- Institutional (51.4)
Key October ABI Highlights
- Project inquiries index: 58.5
- Design contracts index: 51.7
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. Regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. Any score above 50 reflects an increase in design services.
