The Architecture Billings Index (ABI) saw a jump of more than a full point last month, indicating acceleration in the growth of design activity nationally. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the July ABI score was 52.7, up from a mark of 51.6 in June. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 66.7, up dramatically from the reading of 62.6 the previous month.
“There continues to be encouraging signs that the design and construction industry continues to improve,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “But we also hear a wide mix of business conditions all over the country, ranging from outstanding and booming to slowly improving to flat. In fact, plenty of architecture firms are reporting very weak business conditions as well, so it is premature to declare the entire sector has entered an expansion phase.”
Key July ABI highlights:
- Regional averages: Northeast (54.3), South (54.2), West (51.1), Midwest (50.8)
- Sector index breakdown: mixed practice (56.9), commercial / industrial (54.2), multi-family residential (53.3), institutional (50.6)
- Project inquiries index: 66.4
Note: the regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
High-rise Construction | Mar 4, 2015
Must see: Egypt planning 656-foot pyramid skyscraper in Cairo
Zayed Crystal Spark Tower will stand 200 meters tall and will be just a short distance from the pyramids of Giza.
Transit Facilities | Mar 4, 2015
5+design looks to mountains for Chinese transport hub design
The complex, Diamond Hill, will feature sloping rooflines and a mountain-like silhouette inspired by traditional Chinese landscape paintings.
Energy Efficiency | Mar 4, 2015
DOE launches crowdsourcing website for technology innovators
The Oak Ridge National Laboratory launched a new crowdsourcing website called the Buildings Crowdsoucing Community to collect and share ideas by innovators for energy-efficient technologies to use in homes and buildings.
Multifamily Housing | Mar 3, 2015
10 kitchen and bath design trends for 2015
From kitchens made for pet lovers to floating vanities, the nation's top kitchen and bath designers identify what's hot for 2015.
Office Buildings | Mar 3, 2015
Former DuPont lab to be converted into business incubator near UPenn campus
The new Pennovation Center will provide collaborative and research spaces for educators, scientists, students, and the private sector.
Sponsored | BIM and Information Technology | Mar 3, 2015
The great debate: Is 3D PDF really BIM?
You can pull apart buildings, cut through floors, and view simulated animation for assembly instructions all within a PDF.
K-12 Schools | Mar 2, 2015
BD+C special report: What it takes to build 21st-century schools
How the latest design, construction, and teaching concepts are being implemented in the next generation of America’s schools.
Codes and Standards | Mar 2, 2015
Proposed energy standard for data centers, telecom buildings open for public comment
The intent of ASHRAE Standard 90.4P is to create a performance-based approach that would be more flexible and accommodating of innovative change.
K-12 Schools | Mar 1, 2015
Are energy management systems too complex for school facility staffs?
When school districts demand the latest and greatest, they need to think about how those choices will impact the district’s facilities employees.
Office Buildings | Mar 1, 2015
Google unveils dramatic tent-like, modular-focused plan for corporate HQ
The master plan by Bjarke Ingels and Thomas Heatherwick will wrap highly flexible office blocks in soaring translucent canopies.