For the third consecutive month, the demand for design activity increased according to latest Architecture Billings Index (ABI) from the American Institute of Architects (AIA). April’s ABI score was 50.6, which was down from March’s score of 51.9, but any score above 50 signifies increased billings. The last time the ABI had three consecutive months of growth was May through July 2015. Those were some of the strongest months last year, so if that trend continues we could be looking at a six-month span of growth in demand for design services. The ABI acts as an early predictor for future nonresidential construction spending and activity with the average lead time between billings and construction spending typically being nine to twelve months.

The new projects inquiry index for April was 56.9, down from March’s score of 58.1. The design contracts index jumped up from 51.8 in March to 54.3 in April, a sign that billings should grow as we make our way through the summer.

All four regions were above the 50-mark for April’s their three-month averages. All scores above 50 indicate an increase in billings. The Midwest (50.8), Northeast (51.5) and West (50.8) were all higher than their March averages. The South was down just a bit to 52.2 in April from March’s score of 52.4.

The Institutional sector was the only area not to have a positive score but did improve from 48 in March to 49 in April. Multi-family Residential continues to lead the pack with a three-month average score of 53.7. Commercial/Industrial increased to 52.0 in April after a score of 51.8 the previous month. Mixed Practice held steady at a score of 50 for the second consecutive month.

Based on the ABI scores we’ve seen over the past couple of months, construction activity should be good to close out the year and usher in 2017. If the increase in demand for design activity trend continues, 2017 will be a busy year for nonresidential construction activity.