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July ABI Score Recap- Positive Among Election Uncertainty

 

ABI Score

 

Fast Facts:

  • July’s ABI score- 51.5
  • July’s score fell from June’s ABI score which was 52.6. However, the score still reflects an increase in design services. *
  • The new projects inquiry index was 57.5, which is down from a 58.6 in June.

 

The July ABI score marks the sixth consecutive month, and the tenth month out of the last twelve, that demand across all project types has increased. Interestingly, AIA Chief Economist Kermit Baker, Hon. AIA PhD, reported some “uncertainty surrounding the presidential election.” Some funding decisions regarding larger construction projects are being delayed or put on hold for the time being. This uncertainty over the upcoming election could, in part, explain June’s unexpected construction spending decline, as reported by the U.S. Census Bureau. This may be the first of many warnings of economic volatility surrounding the 2016 election.

 

  • Regional averages: South (56.9), Midwest (50.1), Northeast (49.3), West (49.2)
  • Sector index breakdown: multi-family residential (55.2), institutional (50.7), mixed practice (50.5), commercial / industrial (50.3)

 

*The ABI (Architectural Billing Index) is an economic indicator of construction activity. The score is derived from results of a monthly survey asking AIA firms whether their billings increased, decreased or stayed the same from prior month. Anything about a score of 50 indicates an increase in billings; below a 50 indicates a decline. The score is also a predictor of construction spending with a nine to twelve-month gap between architectural spending and construction spending. ABI news is broken out on a monthly and quarterly basis.

For more information on ABI scores, click here.

 

Related- June ABI Scores

Katie Craven
Katie Craven is Marketing, Communication and Brand Manager at Watchdog Real Estate Project Managers, a real-estate consulting firm that provides owner’s representation and project management services. More about Watchdog Real Estate Project Managers as well as additional blog posts can be found here.
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