The Architecture Billings Index (ABI) slipped in August after showing mostly healthy business conditions so far this year. The American Institute of Architects reported the August ABI score was 49.1, down from a mark of 54.7 in July. This score reflects a slight decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.8, down from a reading of 63.7 the previous month.
As an economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
“Over the past several years, a period of sustained growth in billings has been followed by a temporary step backwards,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The fact that project inquiries and new design contracts continue to grow at a healthy pace suggests that this should not be a cause for concern throughout the design and construction industry.”
Key August ABI highlights:
• Regional averages: Midwest (56.1), South (53.8), West (50.2) Northeast (46.8)
• Sector index breakdown: institutional (53.7), mixed practice (52.8), commercial / industrial (49.7) multi-family residential (49.5)
• Project inquiries index: 61.8
• Design contracts index: 55.3
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Giants 400 | Aug 6, 2015
HEALTHCARE AEC GIANTS: Hospital and medical office construction facing a slow but steady recovery
Construction of hospitals and medical offices is expected to shake off its lethargy in 2015 and recover modestly over the next several years, according to BD+C's 2015 Giants 300 report.
Codes and Standards | Aug 6, 2015
ConsensusDocs releases new CM agency contract standard agreement
For use when owner acts as the construction manager, hires a construction manager, or uses multiple prime contractors
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 135 Office Sector Architecture Firms
Gensler, HOK, and Perkins+Will top BD+C's ranking of the nation's largest office sector architecture and architecture/engineering firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 37 Engineering/Architecture Firms
Jacobs, AECOM, and Thornton Tomasetti head Building Design+Construction's 2015 ranking of the largest engineering/architecture firms in the United States.
Giants 400 | Aug 5, 2015
ENGINEERING GIANTS: Profits, revenue on the rise at U.S. engineering firms as economy sputters back to life
The vast majority of engineering firms are decidedly bullish on revenue growth for 2015, and profitability is nearing a six-year high, according to BD+C's 2015 Giants 300 report.
Giants 400 | Aug 4, 2015
GIANTS 300 REPORT: Top 64 Architecture/Engineering Firms
Stantec, HOK, and Callison RTKL top Building Design+Construction's 2015 ranking of the largest architecture/engineering firms in the United States.
Giants 400 | Aug 4, 2015
GIANTS 300 REPORT: Top 106 Architecture Firms
Gensler, Perkins+Will, and Kohn Pedersen Fox top Building Design+Construction's 2015 ranking of the largest architecture firms in the United States.
Giants 400 | Aug 4, 2015
ARCHITECTURE GIANTS: 21 practice management innovations from architecture Giants
Design firms have gone all out with management innovations in the last year. Check out which ones might work for your firm.
Architects | Aug 4, 2015
Frank Lloyd Wright School of Architecture closer to independent incorporation
The school is halfway to its first fundraising milestone, but is facing a major deadline at end of this month.