Following a nine-month stretch of positive billings, the Architecture Billings Index (ABI) showed no increase in design activity in January.
The American Institute of Architects reported the January ABI score was 49.9, down from a mark of 52.6 in December. This score reflects a very modest decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, up from the reading of 51.3the previous month.
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.
“This easing in demand for design services is a bit of a surprise given the overall strength of the market over the past nine months,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Likely some of this can be attributed to severe weather conditions in January. We will have a better sense if there is a reason for more serious concern over the next couple of months.”
* Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.
Key December ABI highlights:
- Regional averages: South (54.8), West (49.3), Midwest (50.8), Northeast (46.0)
- Sector index breakdown: multi-family residential (51.4), institutional (53.0), commercial / industrial (50.9), mixed practice (46.9)
- Project inquiries index: 58.7
- Design contracts index: 51.3
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
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. More at: http://www.aia.org/practicing/economics/AIAS076265
Related Stories
| 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.
| Nov 28, 2011
Leo A Daly and McCarthy Building complete Casino Del Sol expansion in Tucson, Ariz.
Firms partner with Pascua Yaqui Tribe to bring new $130 million Hotel, Spa & Convention Center to the Tucson, Ariz., community.
| Nov 28, 2011
Armstrong acquires Simplex Ceilings
Simplex will become part of the Armstrong Building Products division.
| Nov 28, 2011
Nauset Construction completes addition for Franciscan Hospital for Children
The $6.5 million fast-track, urban design-build projectwas completed in just over 16 months in a highly sensitive, occupied and operational medical environment.
| Nov 23, 2011
Lord, Aeck & Sargent opens fourth U.S. office, acquiring architecture firm in Austin, Texas
Strategic move offers growth opportunity and strengthens the firm’s historic preservation portfolio.
| Nov 23, 2011
Griffin Electric completes Gwinnett Tech project
Accommodating up to 3,000 students annually beginning this fall, the 78,000-sf, three-story facility consists of thirteen classrooms and twelve high-tech laboratories, in addition to several lecture halls and faculty offices.
| Nov 22, 2011
Corporate America adopting revolutionary technology
The survey also found that by 2015, the standard of square feet allocated per employee is expected to drop from 200 to estimates ranging from 50 to 100 square feet per person dependent upon the industry sector.
| Nov 22, 2011
Report finds that L.A. lags on solar energy, offers policy solutions
Despite robust training programs, L.A. lacks solar jobs; lost opportunity for workers in high-need communities.
| Nov 22, 2011
Saskatchewan's $1.24 billion carbon-capture project
The government of Saskatchewan has approved construction of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project.
