For the second consecutive month, the Architecture Billings Index (ABI) indicated a modest increase in design activity in March. 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.
The American Institute of Architects (AIA) reported the March ABI score was 51.7, up from a mark of 50.4 in February. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.2, up from a reading of 56.6 the previous month.
“Business conditions at architecture firms generally are quite healthy across the country. However, billings at firms in the Northeast were set back with the severe weather conditions, and this weakness is apparent in the March figures,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The multi-family residential market has seen its first occurrence of back-to-back negative months for the first time since 2011, while the institutional and commercial sectors are both on solid footing.”
Key March ABI highlights:
• Regional averages: South (54.5), Midwest (51.0), West (50.4), Northeast (45.8)
• Sector index breakdown: institutional (53.2), commercial / industrial (53.0), multi-family residential (49.7), mixed practice (46.2)
• Project inquiries index: 58.2
• Design contracts index: 52.3
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. The diffusion indexes contained in the full report are derived from a monthly “Work-on-the-Boards” survey that is sent to a panel of AIA member-owned firms. More at: http://www.aia.org/practicing/economics/AIAS076265
Related Stories
Sustainability | Apr 4, 2023
NIBS report: Decarbonizing the U.S. building sector will require massive, coordinated effort
Decarbonizing the building sector will require a massive, strategic, and coordinated effort by the public and private sectors, according to a report by the National Institute of Building Sciences (NIBS).
Education Facilities | Apr 3, 2023
Oklahoma’s Francis Tuttle Technology Center opens academic center for affordable education and training
Oklahoma’s Francis Tuttle Technology Center, which provides career-specific training to adults and high school students, has completed its Francis Tuttle Danforth Campus—a two-story, 155,000-sf academic building. The project aims to fill the growing community’s rising demand for affordable education and training.
Sports and Recreational Facilities | Mar 30, 2023
New University of St. Thomas sports arena will support school's move to Division I athletics
The University of St. Thomas in Saint Paul, Minn., last year became the first Division III institution in the modern NCAA to transition directly to Division I. Plans for a new multipurpose sports arena on campus will support that move.
Warehouses | Mar 29, 2023
Construction completed on Canada’s first multi-story distribution center
Construction was recently completed on Canada’s first major multi-story industrial project, a distribution center in Burnaby, British Columbia. The project provides infrastructure for last-mile delivery in a world where consumers have come to expect next-day and same-day delivery, according to Ware Malcomb, the project's architect of record.
AEC Innovators | Mar 27, 2023
Leading architecture, engineering firm HED appoints new co-CEOs
As children of immigrant families, Van Herle and Suarez will bring a diverse perspective into a historically underrepresented industry and advance the firm’s mission of creating a positive impact for clients, communities, and the world.
Healthcare Facilities | Mar 26, 2023
UC Davis Health opens new eye institute building for eye care, research, and training
UC Davis Health recently marked the opening of the new Ernest E. Tschannen Eye Institute Building and the expansion of the Ambulatory Care Center (ACC). Located in Sacramento, Calif., the Eye Center provides eye care, vision research, and training for specialists and investigators. With the new building, the Eye Center’s vision scientists can increase capacity for clinical trials by 50%.
Libraries | Mar 26, 2023
An abandoned T.J. Maxx is transformed into a new public library in Cincinnati
What was once an abandoned T.J. Maxx store in a shopping center is now a vibrant, inviting public library. The Cincinnati & Hamilton County Public Library (CHPL) has transformed the ghost store into the new Deer Park Library, designed by GBBN.
Multifamily Housing | Mar 24, 2023
Multifamily developers offering new car-free projects in car-centric cities
Cities in the South and Southwest have eased zoning rules with parking space mandates in recent years to allow developers to build new housing with less parking.
Multifamily Housing | Mar 24, 2023
Coastal multifamily developers, owners expect huge jump in insurance costs
In Texas and Florida, where Hurricane Ian caused $50 billion in damage last year, insurance costs are nearly 50% higher than in 2022.
Multifamily Housing | Mar 24, 2023
Average size of new apartments dropped sharply in 2022
The average size of new apartments in 2022 dropped sharply in 2022, as tracked by RentCafe. Across the U.S., the average new apartment size was 887 sf, down 30 sf from 2021, which was the largest year-over-year decrease.