Architecture Billings Index improves

The Architecture Billings Index, an economic indicator for construction activity, improved in June, rising from 52.6 in May to 53.5.

The index reflects the approximate nine to 12 month lead time between architecture billings and construction spending. A score above 50 indicates an increase in billings.

The new projects inquiry index was 66.4, up from the reading of 63.2 the previous month and the highest level in a calendar year. The design contracts index hit 55.7, the highest mark since the group started measuring the indicator in October 2010.

'It appears that design activity for all major segments of the building industry is growing, indicating a sustainable strengthening across the construction marketplace, ' said American Institute of Architects Iowa executive director Jessica Reinert.

'With the industry growth, the challenge our firms now face is finding the right balance for staffing needs to meet the increasing demand for their services. This is a good problem they are happy to face.”

Other key June highlights:

'Regional averages: Midwest (56.3), South (53.9), Northeast (51.1), West (48.7).

'Sector index breakdown: multi-family residential (57.7), mixed practice (53.8), commercial/industrial (53.1), institutional (50.2).

The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.