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
| Dec 2, 2011
Goody Clancy awarded Ohio State residential project
The project, which is focused on developing a vibrant on-campus community of learning for OSU undergraduates.
| Dec 1, 2011
Nauset Construction breaks ground on Massachusetts health care center
The $20 million project is scheduled to be completed by December 2012.
| Dec 1, 2011
Ground broken on first LEED Platinum designed school house built by volunteers
Phoenix public school receives the generous gift of a state-of-the-art building for student and community use.
| Dec 1, 2011
VLK Architects’ office receives LEED certification
The West 7th development, which houses the firm’s office, was designed to be LEED for Core & Shell, which gave VLK the head start on finishing out the area for LEED Silver Certification CI.
| Nov 29, 2011
First EPD awarded to exterior roof and wall products manufacturer
EPD is a standardized, internationally recognized tool for providing information on a product’s environmental impact.
| Nov 29, 2011
Suffolk Construction breaks ground on Boston residential tower
Millennium Place III is a $220 million, 256-unit development that will occupy a full city block in Boston’s Downtown Crossing.
| Nov 29, 2011
Report finds credit crunch accounts for 20% of nation’s stalled projects
Persistent financing crunch continues to plague design and construction sector.
| Nov 29, 2011
SB Architects completes Mission Hills Volcanic Mineral Springs and Spa in China
Mission Hills Volcanic Mineral Springs and Spa is home to the largest natural springs reserve in the region, and measures 950,000 sf.
| Nov 29, 2011
Turner Construction establishes partnership with Clark Builders
Partnership advances growth in the Canadian marketplace.
| Nov 29, 2011
AIA launches stalled projects database
To populate this database with both stalled projects and investors interested in financing them, the AIA in the last week initiated a communications campaign to solicit information about stalled projects around the country from its members and allied professionals.