Following the first positive score in four months, the Architecture Billings Index (ABI) reversed direction again in September. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the September ABI score was 46.9, following a score of 51.4 in August. This score reflects a sharp decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 54.3, down from a reading of 56.9 the previous month.
“It appears that the positive conditions seen last month were more of an aberration,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The economy is weak enough at present that design activity is bouncing around more than usual; one strong month can be followed by a weak one. The economy needs to be stronger to generate sustained growth in design activity.”
Key September ABI highlights:
- Regional averages: Midwest (51.0), Northeast (50.8), South (47.3), West (46.7)
- Sector index breakdown: commercial / industrial (52.4), mixed practice (50.0), institutional (48.0), multi-family residential (46.4)
- Project inquiries index: 54.3
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. BD+C
Related Stories
Digital Twin | Aug 27, 2020
The Weekly show: Digital twin technology and social equity in the AEC market
The August 27 episode of BD+C's "The Weekly" is available for viewing on demand.
Architects | Aug 26, 2020
We the People: Four steps for the architecture profession to build unity through design
Architect offers a 4-point manifesto to the design community to work for racial and social justice in the U.S. following the death of George Floyd.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
Architects | Aug 19, 2020
Japan’s Tokyo Toilet project looks to improve the perception of public restrooms
17 toilets throughout Shibuya will be redesigned as part of the project.
Architects | Aug 5, 2020
Final report: BD+C's 2020 Color Trends Report
This special research report from the editors of BD+C explores the leading trends and drivers related to the use of color on commercial, institutional, and multifamily building projects.
University Buildings | Aug 2, 2020
R&D hubs, modular-built hotels, and an award-winning student center on the August 6 “The Weekly”
R&D hubs, modular-built hotels, and an award-winning student center on the August 6 “The Weekly”
University Buildings | Jul 24, 2020
A hybrid learning approach could redefine higher education
Universities reassess current assets to determine growth strategies.
Coronavirus | Jun 19, 2020
Experts address COVID-19's impact on nursing homes and schools on The Weekly
The June 18 episode of BD+C's "The Weekly" is available for viewing on demand.
Coronavirus | Jun 12, 2020
BD+C launches 'The Weekly,' a streaming program for the design and construction industry
The first episode, now available on demand, features experts from Robins & Morton, Gensler, and FMI on the current state of the AEC market.
Architects | Jun 8, 2020
Two Frank Lloyd Wright sites set to reopen for tours with enhanced health and safety protocols
The sites will reopen on Thursday, June 11.
