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
Giants 400 | Oct 6, 2022
Top 100 Medical Office Building Architecture + AE Firms for 2022
CannonDesign, Perkins Eastman, HGA, and E4H Environments for Health Architecture top the ranking of the nation's largest medical office building (MOB) architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 100 Outpatient Facility Architecture + AE Firms for 2022
Perkins and Will, HDR, CannonDesign, and Massa Multimedia Architecture top the ranking of the nation's largest outpatient facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 130 Hospital Facility Architecture + AE Firms for 2022
HDR, HKS, CannonDesign, and Stantec top the ranking of the nation's largest hospital facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 115 Healthcare Sector Contractors + CM Firms for 2022
Turner Construction, Brasfield & Gorrie, DPR Construction, and JE Dunn Construction top the ranking of the nation's largest healthcare sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.
Giants 400 | Oct 6, 2022
Top 90 Healthcare Sector Engineering + EA Firms for 2022
Jacobs, AECOM, WSP, and IMEG Corp. head the ranking of the nation's largest healthcare sector engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.
Giants 400 | Oct 6, 2022
Top 170 Healthcare Sector Architecture + AE Firms for 2022
HDR, CannonDesign, HKS, and Stantec top the ranking of the nation's largest healthcare sector architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.
Designers / Specifiers / Landscape Architects | Oct 6, 2022
DAHLIN announces acquisition of Design Line Interiors
DAHLIN Architecture | Planning | Interiors announced today that it is expanding its interiors capabilities with the acquisition of Del Mar, California-based Design Line Interiors.
Contractors | Oct 6, 2022
Modular construction gets boost from impacts of the pandemic
The impact of the Covid pandemic on the construction industry appears to be fueling demand for modular construction methods, especially in the western U.S. and Canada.
Laboratories | Oct 5, 2022
Bigger is better for a maturing life sciences sector
CRB's latest report predicts more diversification and vertical integration in research and production.
Multifamily Housing | Oct 5, 2022
Co-living spaces, wellness-minded designs among innovations in multifamily housing
The booming multifamily sector shows no signs of a significant slowdown heading into 2023. Here is a round up of Giants 400 firms that are driving innovation in this sector.