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
Multifamily Housing | May 1, 2023
A prefab multifamily housing project will deliver 200 new apartments near downtown Denver
In Denver, Mortenson, a Colorado-based builder, developer, and engineering services provider, along with joint venture partner Pinnacle Partners, has broken ground on Revival on Platte, a multifamily housing project. The 234,156-sf development will feature 200 studio, one-bedroom, and two-bedroom apartments on eight floors, with two levels of parking.
Mass Timber | May 1, 2023
SOM designs mass timber climate solutions center on Governors Island, anchored by Stony Brook University
Governors Island in New York Harbor will be home to a new climate-solutions center called The New York Climate Exchange. Designed by Skidmore, Owings & Merrill (SOM), The Exchange will develop and deploy solutions to the global climate crisis while also acting as a regional hub for the green economy. New York’s Stony Brook University will serve as the center’s anchor institution.
Market Data | May 1, 2023
AEC firm proposal activity rebounds in the first quarter of 2023: PSMJ report
Proposal activity for architecture, engineering and construction (A/E/C) firms increased significantly in the 1st Quarter of 2023, according to PSMJ’s Quarterly Market Forecast (QMF) survey. The predictive measure of the industry’s health rebounded to a net plus/minus index (NPMI) of 32.8 in the first three months of the year.
Sustainability | May 1, 2023
Increased focus on sustainability is good for business and attracting employees
A recent study, 2023 State of Design & Make by software developer Autodesk, contains some interesting takeaways for the design and construction industry. Respondents to a survey of industry leaders from the architecture, engineering, construction, product design, manufacturing, and entertainment spheres strongly support the idea that improving their organization’s sustainability practices is good for business.
Codes and Standards | May 1, 2023
Hurricane Ian aftermath expected to prompt building code reform in Florida
Hurricane Ian struck the Southwest Florida coastline last fall with winds exceeding 150 mph, flooding cities, and devastating structures across the state. A construction risk management expert believes the projected economic damage, as high as $75 billion, will prompt the state to beef up building codes and reform land use rules.
| Apr 28, 2023
$1 billion mixed-use multifamily development will add 1,200 units to South Florida market
A giant $1 billion residential project, The District in Davie, will bring 1.6 million sf of new Class A residential apartments to the hot South Florida market. Located near Ft. Lauderdale and greater Miami, the development will include 36,000 sf of restaurants and retail space. The development will also provide 1.1 million sf of access controlled onsite parking with 2,650 parking spaces.
Architects | Apr 27, 2023
Blind Ambition: Insights from a blind architect on universal design
Blind architect Chris Downey shares his message to designers that universal design goes much further than simply meeting a code to make everything accessible.
Design Innovation Report | Apr 27, 2023
BD+C's 2023 Design Innovation Report
Building Design+Construction’s Design Innovation Report presents projects, spaces, and initiatives—and the AEC professionals behind them—that push the boundaries of building design. This year, we feature four novel projects and one building science innovation.
Mixed-Use | Apr 27, 2023
New Jersey turns a brownfield site into Steel Tech, a 3.3-acre mixed-use development
In Jersey City, N.J., a 3.3-acre redevelopment project called Steel Tech will turn a brownfield site into a mixed-use residential high-rise building, a community center, two public plazas, and a business incubator facility. Steel Tech received site plan approval in recent weeks.
Multifamily Housing | Apr 27, 2023
Watch: Specifying materials in multifamily housing projects
A trio of multifamily housing experts discusses trends in materials in their latest developments. Topics include the need to balance aesthetics and durability, the advantages of textured materials, and the benefits of biophilia.
