According to the AIA, the Architecture Billings Index (ABI) has indicated growth in activity for the first time since January 2008.
The ABI is the leading economic indicator of construction activity, and the AIA reported that the September score was up to 50.4 from August’s 48.2. As any score above 50 indicates an increase in demand, these numbers show growth marks for the first time in years.
In addition to the ABI, the new projects inquiry index moved from a 54.6 to a 62.3, which is the highest it has been since 2007.
“This is certainly encouraging news, but we will need to see consistent improvement over the next few months in order to feel comfortable about the state of the design and construction industry,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA.
“While there has been increasing demand for design services, it is happening at a slow rate and there continue to be other obstacles that are preventing a more accelerated recovery. Still, the strong upturn in design activity in the commercial and industrial sector certainly suggests that this upturn can possibly be sustained.”
The ABI will be monitored closely to see if the positive growth trend continues.