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
| May 15, 2012
National Tradesmen Day set for Sept. 21
IRWIN Tools invites the nation to honor "The Real Working Hands that Build America and Keep it Running Strong".
| May 15, 2012
SAGE Electrochromics to become wholly owned subsidiary of Saint-Gobain
This deal will help SAGE expand into international markets, develop new products and complete construction of the company’s new, state-of-the-art manufacturing facility in Faribault, Minn.
| May 14, 2012
Codes harvest rainwater
IAPMO’s Green Plumbing and Mechanical Code Supplement could make rainwater harvesting systems commonplace by clearly outlining safe installation and maintenance practices.
| May 14, 2012
Plumbing research coalition to study drainline transport issue
The effort is aimed at determining if decreasing levels of water flow––caused by increasingly efficient plumbing fixtures––are sufficient to clear debris from plumbing pipes.
| May 14, 2012
SOM to break ground on supertall structure in China
The 1,740-feet (530-meter) tall tower will house offices, 300 service apartments and a 350-room, 5-star hotel beneath an arched top.
| May 14, 2012
Adrian Smith + Gordon Gill Architecture design Seoul’s Dancing Dragons
Supertall two-tower complex located in Seoul’s Yongsan International Business District.
| May 14, 2012
SMPS and Deltek announce alliance
A/E/C industry leaders partner to advance technology’s role in design firm marketing and business development.
| May 14, 2012
ArchiCAD e-Specs integration unveiled
Architects, engineers and construction professionals use InterSpec’s e-SPECS products on thousands of projects annually to maintain synchronization between construction models, drawings, and project specifications.
| May 11, 2012
2012 White Paper: High-Performance Reconstructed Buildings: The 99% Solution
Download the complete White Paper, Chapters 1-10
| May 11, 2012
Chapter 10 Action Plan: 18 Recommendations for Advancing Sustainability in Reconstructed Buildings
We offer the following recommendations in the hope that they will help step up the pace of high-performance building reconstruction in the U.S. and Canada. We consulted many experts for advice, but these recommendations are solely the responsibility of the editors of Building Design+Construction. We welcome your comments. Please send them to Robert Cassidy, Editorial Director: rcassidy@sgcmail.com.