Architecture Billings Index rebounds

The American Institute of Architects reported the July ABI rating at 51.8. Any score more than 50 indicates an increase in billings. The June ABI was 49.2.

The latest index suggests a strong outlook in the commercial construction market well into 2007, based on the approximate six- to nine-month lag time between architecture billings and construction spending.

“For the last few months the index has been close to the break-even point on both the positive and negative side,” said AIA Chief Economist Kermit Baker in an Aug. 23 news release. “We will continue to monitor for signs of a pending design slowdown, but for now these figures are in line with our long-range outlook for a healthy nonresidential sector.”

The billing inquiries component of the index was 64 in July, up from 56.7 in June.

The ABI is derived from a monthly Work-on-the-Boards survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce, the findings provide a six-month glimpse into the future of nonresidential construction activity.

AIA member-owned firms are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.