The Architecture Billings Index showed renewed strength in January, with a jump to 54.2 from 51.2 in December (any score above 50 indicates positive growth). All four regions were in positive territory with the Midwest leading at 54.4, the long struggling West showing strength at 53.4, the South came in at 51.7, and the Northeast at 50.3. The Index posted the strongest gains since November 2007.

Inquiries for new projects also surged, rising to 63.2 from 57.9 in December. “We have been pointing in this direction for the last several months, but this is the strongest indication that there will be an upturn in construction activity in the coming months,” said AIA Chief Economist, Kermit Baker, in a statement.  “But as we continue to hear about overall improving economic conditions and that there are more inquiries for new design projects in the marketplace, a continued reservation by lending institutions to supply financing for construction projects is preventing a more widespread recovery in the industry.”

By sector, all areas were in positive territory: mixed practice (54.9), multi-family residential (54.5), commercial/industrial (52.0), and institutional (50.2).