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
Giants 400 | Oct 2, 2023
Top 50 Data Center Construction Firms for 2023
Turner Construction, Holder Construction, HITT Contracting, DPR Construction, and Fortis Construction top BD+C's ranking of the nation's largest data center sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Contractors | Sep 25, 2023
Balfour Beatty expands its operations in Tampa Bay, Fla.
Balfour Beatty is expanding its leading construction operations into the Tampa Bay area offering specialized and expert services to deliver premier projects along Florida’s Gulf Coast.
Resiliency | Sep 25, 2023
National Institute of Building Sciences, Fannie Mae release roadmap for resilience
The National Institute of Building Sciences and Fannie Mae have released the Resilience Incentivization Roadmap 2.0. The document is intended to guide mitigation investment to prepare for and respond to natural disasters.
Codes and Standards | Sep 25, 2023
Lendlease launches new protocol for Scope 3 carbon reduction
Lendlease unveiled a new protocol to monitor, measure, and disclose Scope 3 carbon emissions and called on built environment industry leaders to tackle this challenge.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Giants 400 | Sep 20, 2023
Top 80 Hospitality Facility Construction Firms for 2023
Suffolk Construction, The Yates Companies, STO Building Group, and PCL Construction Enterprises top BD+C's ranking of the nation's largest hospitality facilities sector contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts.
Giants 400 | Sep 18, 2023
Top 120 Office Building Construction Firms for 2023
Turner Construction, STO Building Group, AECOM, and DPR Construction top BD+C's ranking of the nation's largest office building sector contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all office building work, including core and shell projects and workplace/interior fitouts.
