The construction industry remains optimistic even with volatile global market conditions. Two indicators that were recently released show a positive outlook out for 2016. The Architecture Billings Index (ABI), a leading indicator for U.S. commercial construction, ended 2015 on a positive note with eight of the past 12 months pointing toward increased demand for architects’ services.
The monthly index compiled by the American Institute of Architects (AIA), reflects the nine- to twelve-month lead time between billings by architects and construction spending. Demand grew in December with an index of 50.9, up from 49.3 the previous month. Any index score above 50 indicates an increase in billings.
“Overall, ABI scores for 2015 averaged just below the strong showing in 2014, which points to another healthy year for construction this year,” according to AIA Chief Economist Kermit Baker.
The Wells Fargo Construction Industry Forecast’s survey released Tuesday by Wells Fargo & Co. subsidiary Wells Fargo Equipment Finance reported that 62% of respondents believe the construction industry will expand over the next two years.