After showing struggling business conditions for most of 2011, the Architecture Billings Index (ABI) has now reached positive terrain in consecutive months. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The AIA reported the December ABI score was 52.0, following the exact same mark in November. This score reflects an overall increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.0, down just a point from a reading of 65.0 the previous month.
“We saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it’s too early to be sure that we are in a full recovery mode,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Nevertheless, this is very good news for the design and construction industry and it’s entirely possible conditions will slowly continue to improve as the year progresses.”
Key December ABI highlights include:
- Regional averages: South (54.2), Midwest (53.1), Northeast (52.6), West (45.1)
- Sector index breakdown: multi-family residential (54.3), commercial / industrial (54.1), institutional (51.3), mixed practice (44.5)
- Project inquiries index: 64.0
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. BD+C
Related Stories
Multifamily Housing | Jun 1, 2015
Sacramento moves forward on multifamily project with new modular supplier
Guerdon Modular Buildings will provide modules for 118 apartments.
BIM and Information Technology | May 27, 2015
4 projects honored with AIA TAP Innovation Awards for excellence in BIM and project delivery
Morphosis Architects' Emerson College building in Los Angeles and the University of Delaware’s ISE Lab are among the projects honored by AIA for their use of BIM/VDC tools.
Healthcare Facilities | May 27, 2015
Rochester, Minn., looks to escape Twin Cities’ shadow with $6.5 billion biotech development
The 20-year plan would also be a boon to Mayo Clinic, this city’s best-known address.
BIM and Information Technology | May 21, 2015
How AEC firms should approach BIM training
CASE Founding Partner Steve Sanderson talks about the current state of software training in the AEC industry and common pitfalls in AEC training.
Architects | May 20, 2015
Architecture billings remain stuck in winter slowdown
Regional business conditions continue to thrive in the South and West
University Buildings | May 19, 2015
Special Report: How your firm can help struggling colleges and universities meet their building project goals
Building Teams that want to succeed in the higher education market have to help their clients find new funding sources, control costs, and provide the maximum value for every dollar.
University Buildings | May 19, 2015
Renovate or build new: How to resolve the eternal question
With capital budgets strained, renovation may be an increasingly attractive money-saving option for many college and universities.
University Buildings | May 19, 2015
KU Jayhawks take a gander at a P3 development
The P3 concept is getting a tryout at the University of Kansas, where state funding for construction has fallen from 20% of project costs to about 11% over the last 10 years.
Retail Centers | May 18, 2015
ULI forecast sees clear skies for real estate over next three years
With asset availability declining in several sectors, rents and transactions should rise.
Contractors | May 18, 2015
Gilbane foresees double-digit growth in construction spending in 2015
In its Spring outlook, the construction company frets about hiring patterns that aren’t fully taking a project’s workload into account.