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
| Jul 18, 2012
Construction employment stagnates in June
Lack of hiring in construction combined with job growth elsewhere threatens to create skilled-labor gap once contractors are ready to hire again.
| Jul 18, 2012
Legat & Kingscott relocates architecture/interior design office
Move enables the architecture/interior design firm to better serve its expanding clientele.
| Jul 18, 2012
Alcoa appoints Hunter Architectural Manager
Hunter to operate with the goal of driving specification, new product adoption and overall demand for the Alcoa BCS North America product range.
| Jul 17, 2012
AIA and Architecture for Humanity select Disaster Response Grant recipients
Awards help each group implement their locally driven preparedness project in the second half of the year.
| Jul 17, 2012
KM/Plaza changes name to Plaza Construction
Lands new projects including the Perry South Beach Hotel and Dadeland Mall Kendall Wing Expansion.
| Jul 17, 2012
Dr. Phillips Charities Headquarters Building receives LEED Silver
The building incorporates sustainable design features, environmentally-friendly building products, energy efficient systems, and environmentally sensitive construction practices.
| Jul 16, 2012
BD+C Under 40 Leadership Summit scheduled
Attendee registration for U40 Summit II now open.
| Jul 16, 2012
Construction spending at 2 ½ year peak
Construction economist Ken Simonson says that four private nonresidential categories each posted 12-month spending increases of more than 25%: power and energy construction, 35%; hotels, 29%; educational and manufacturing, 27% apiece.
| Jul 16, 2012
Chen named design director at Heery
Chen comes to Heery from his own firm, Mark Chen Architect, a design and planning consulting firm, based in New York City, whose recent work includes large-scale planning studies for mixed-use projects.
| Jul 16, 2012
Reed Construction hires new project manager
Fread is a LEED AP and received his degree from Purdue University.