The Architecture Billings Index (ABI) remained positive again in June after the first decline in ten months in April. 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 June ABI score was 51.6, down from a mark of 52.9 in May. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 62.6, up sharply from the reading of 59.1 the previous month.
“With steady demand for design work in all major nonresidential building categories, the construction sector seems to be stabilizing,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Threats to a sustained recovery include construction costs and labor availability, inability to access financing for real estate projects, and possible adverse effects in the coming months from sequestration and the looming federal debt ceiling debate.”
Key June ABI highlights:
- Regional averages: Northeast (55.6), South (54.8), West (51.2), Midwest (48.3)
- Sector index breakdown: commercial / industrial (54.7), multi-family residential (54.0), mixed practice (52.4), institutional (51.8)
- Project inquiries index: 62.6
- The regional and sector categories are calculated as a 3-month moving average, whereas the index 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. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended as compared to the prior month, and the results are then compiled into the ABI. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| Dec 2, 2014
First existing multifamily buildings to earn Energy Star certification unveiled
River City in Chicago is one of 17 existing multifamily properties to earn Energy Star certification, which became available to this sector on Sept. 16 via a scoring system for multifamily properties that Energy Star and Fannie Mae had been developing for three years.
| Dec 2, 2014
Nashville planning retail district made from 21 shipping containers
OneC1TY, a healthcare- and technology-focused community under construction on 18.7 acres near Nashville, Tenn., will include a mini retail district made from 21 shipping containers, the first time in this market containers have been repurposed for such use.
| Dec 2, 2014
Main attractions: New list tallies up the Top 10 museums completed this year
The list includes both additions to existing structures and entirely new buildings, from Frank Gehry's Foundation Louis Vuitton in Paris to Shigeru Ban's Aspen (Colo.) Art Museum.
| Dec 2, 2014
Nonresidential construction spending rebounds in October
This month's increase in nonresidential construction spending is far more consistent with the anecdotal information floating around the industry, says ABC's Chief Economist Anirban Basu.
| Dec 2, 2014
Hoffmann Architects announces promotions
The architecture and engineering firm specializing in the rehabilitation of building exteriors announces the promotion of members of its Connecticut staff.
| Dec 2, 2014
SPARK designs urban farming housing for Singapore’s elderly population
The proposal blends affordable retirement housing with urban farming by integrating vertical aquaponic farming and rooftop soil planting into multi-unit housing for seniors.
| Dec 2, 2014
Bjarke Ingels unveils cave-like plan for public square in Battersea Power Station
A Malaysian development consortium is guiding the project, which is meant to mimic the caves of Gunung Mulu National Park in Sarawak, East Malaysia.
| Dec 1, 2014
9 most controversial buildings ever: ArchDaily report
Inexplicable designs. Questionable functionality. Absurd budgeting. Just plain inappropriate. These are some of the characteristics that distinguish projects that ArchDaily has identified as most controversial in the annals of architecture and construction.
| Dec 1, 2014
Skanska, Foster + Partners team up on development of first commercial 3D concrete printing robot
Skanska will participate in an 18-month program with a consortium of partners to develop a robot capable of printing complex structural components with concrete.
| Dec 1, 2014
How public-private partnerships can help with public building projects
Minimizing lifecycle costs and transferring risk to the private sector are among the benefits to applying the P3 project delivery model on public building projects, according to experts from Skanska USA.
