Led by the commercial sector, the Architecture Billings Index (ABI) has remained in positive territory four months in a row. 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 American Institute of Architects (AIA) reported the February ABI score was 51.0, following a mark of 50.9 in January. This score reflects a slight increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.4, up from mark of 61.2 the previous month and its highest reading since July 2007.
“This is more good news for the design and construction industry that continues to see improving business conditions,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The factors that are preventing a more accelerated recovery are persistent caution from clients to move ahead with new projects, and a continued difficulty in accessing financing for projects that developers have decided to pursue.”
Key February ABI highlights:
- Regional averages: Midwest (56.0), South (51.3), Northeast (51.0), West (45.6)
- Sector index breakdown: commercial / industrial (55.1), multi-family residential (53.3), institutional (50.3), mixed practice (46.3)
- Project inquiries index: 63.4
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
AEC Tech | Aug 25, 2017
Software cornucopia: Jacksonville Jaguars’ new practice facility showcases the power of computational design
The project team employed Revit, Rhino, Grasshopper, Kangaroo, and a host of other software applications to design and build this uber-complex sports and entertainment facility.
Multifamily Housing | Aug 24, 2017
Storage units, lounges most popular indoor and outdoor amenities in multifamily developments
Tenants and condo owners crave extra space for their stuff. Most developers are happy to oblige.
Green | Aug 24, 2017
Business case for WELL still developing after first generation office fitouts completed
The costs ranged from 50 cents to $4 per sf, according to a ULI report.
Healthcare Facilities | Aug 24, 2017
7 design elements for creating timeless pediatric health environments
A recently published report by Shepley Bulfinch presents pediatric healthcare environments as “incubators for hospital design innovation.”
BD+C University Course | Aug 23, 2017
AIA course: New steel systems add strength and beauty
Advances in R&D are fostering new forms of structural and aesthetic steel.
Market Data | Aug 23, 2017
Architecture Billings Index growth moderates
“The July figures show the continuation of healthy trends in the construction sector of our economy,” said AIA Chief Economist, Kermit Baker.
Architects | Aug 21, 2017
AIA: Architectural salaries exceed gains in the broader economy
AIA’s latest compensation report finds average compensation for staff positions up 2.8% from early 2015.
Sports and Recreational Facilities | Aug 18, 2017
Video: Designing the ideal rugby stadium
HOK invited four world-class rugby players into its London studio to discuss what they would like to see in the rugby stadiums of the future.
Architects | Aug 16, 2017
Staffelbach joins DLR Group
The firm will be merging operations immediately with full integration and the name change to DLR Group| Staffelbach effective October 2.