The Architecture Billings Index (ABI) showed more 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 August ABI score was 53.8, up from a mark of 52.7 in July. 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 63.0, down from the reading of 66.4 the previous month.
“As business conditions at architecture firms have improved eleven out of the past twelve months, it is fair to say that the design professions are in a recovery mode,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “This upturn signals an impending turnaround in nonresidential construction activity, but a key component to maintaining this momentum is the ability of businesses to obtain financing for real estate projects, and for a resolution to the federal government budget and debt ceiling impasse.”
Key August ABI highlights:
- Regional averages: West (54.8), Northeast (54.4), Midwest (52.8), South (51.9)
- Sector index breakdown: mixed practice (60.1), commercial / industrial (54.8), multi-family residential (52.1), institutional (50.8)
- Project inquiries index: 63.0
The regional and sector categories are calculated as a three-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
Office Buildings | Jul 21, 2015
Finally! There's a workplace trend that’s worth embracing
There’s a realization by corporate real estate executives that in order to create a successful workplace, there must be alignment between their people, their place, and the tools they have to do their jobs.
University Buildings | Jul 21, 2015
Maker spaces: Designing places to test, break, and rebuild
Gensler's Kenneth Fisher and Keller Roughton highlight recent maker space projects at MIT and the University of Nebraska that provide just the right mix of equipment, tools, spaces, and disciplines to spark innovation.
Architects | Jul 21, 2015
Architecture Billings Index at highest mark since 2007
This is the first month in 2015 that all regions are reporting positive business conditions, said AIA Chief Economist Kermit Baker.
BIM and Information Technology | Jul 20, 2015
New stylus brings digital sketching to the next level
Without buttons, users can change the weight of the stylus’ stroke.
Architects | Jul 20, 2015
New York design competition looks to shed the sidewalk shed
New York, which has nearly 200 total miles of sidewalk sheds, is seeking a concept that is practical but that also looks good.
Cultural Facilities | Jul 19, 2015
SET Architects wins design competition for Holocaust Memorial
The design for the memorial in Bologna, Italy, is dominated by two large metal monolithic structures that represent the oppressive wooden bunks in concentration camps in Germany during World War II.
Sports and Recreational Facilities | Jul 17, 2015
Japan scraps Zaha Hadid's Tokyo Olympic Stadium project
The rising price tag was one of the downfalls of the 70-meter-tall, 290,000-sm stadium. In 2014, the cost of the project was 163 billion yen, but that rose to 252 billion yen this year.
Cultural Facilities | Jul 16, 2015
Louisville group plans to build world's largest disco ball
The sphere would more than double the size of the current record holder.
Education Facilities | Jul 14, 2015
Chile selects architects for Subantarctic research center
Promoting ecological tourism is one of this facility’s goals
BIM and Information Technology | Jul 14, 2015
New city-modeling software quantifies the movement of urban dwellers
UNA for Rhino 3D helps determine the impact that urban design can have on where pedestrians go.
