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
Data Centers | Nov 13, 2023
Data center sector trends for 2023-2024
Demand for more data centers is soaring, but delivery can be stymied by supply delays, manpower shortages, and NIMBYism.
Education Facilities | Nov 9, 2023
Oakland schools’ central kitchen cooks up lessons along with 30,000 meals daily
CAW Architects recently completed a facility for the Oakland, Calif., school district that feeds students and teaches them how to grow, harvest, and cook produce grown onsite. The production kitchen at the Unified School District Central Kitchen, Instructional Farm, and Education Center, (“The Center”) prepares and distributes about 30,000 meals a day for district schools lacking their own kitchens.
Laboratories | Nov 8, 2023
Boston’s FORUM building to support cutting-edge life sciences research and development
Global real estate companies Lendlease and Ivanhoé Cambridge recently announced the topping-out of FORUM, a nine-story, 350,000-sf life science building in Boston. Located in Boston Landing, a 15-acre mixed-use community, the $545 million project will achieve operational net zero carbon upon completion in 2024.
Retail Centers | Nov 7, 2023
Omnichannel experiences, mixed-use development among top retail design trends for 2023-2024
Retailer survival continues to hinge on retail design trends like blending online and in-person shopping and mixing retail with other building types, such as offices and residential.
Giants 400 | Nov 6, 2023
Top 110 Cultural Facility Architecture Firms for 2023
Populous, Gensler, HGA, DLR Group, and Quinn Evans top BD+C's ranking of the nation's largest cultural facilities sector architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all cultural building sectors, including concert venues, art galleries, museums, performing arts centers, and public libraries.
Giants 400 | Nov 6, 2023
Top 170 Government Building Architecture Firms for 2023
Page Southerland Page, Gensler, Stantec, HOK, and Skidmore, Owings & Merrill top BD+C's ranking of the nation's largest government building sector architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report. Note: This ranking includes revenue from all government building sectors, including federal, state, local, military, and Veterans Affairs (VA) buildings.
Designers | Nov 6, 2023
DLR Group opens office in Nashville, Tenn.
DLR Group is expanding its presence in the Southeast with the opening of an office in downtown Nashville, Tenn.—a collaborative effort led by DLR Group Principals Matthew Gulsvig, AIA, LEED AP, and Randall Coy.
Healthcare Facilities | Nov 3, 2023
The University of Chicago Medicine is building its city’s first freestanding cancer center with inpatient and outpatient services
The University of Chicago Medicine (UChicago Medicine) is building Chicago’s first freestanding cancer center with inpatient and outpatient services. Aiming to bridge longstanding health disparities on Chicago’s South Side, the $815 million project will consolidate care and about 200 team members currently spread across at least five buildings. The new facility, which broke ground in September, is expected to open to patients in spring 2027.
Office Buildings | Nov 2, 2023
Amazon’s second headquarters completes its first buildings: a pair of 22-story towers
Amazon has completed construction of the first two buildings of its second headquarters, located in Arlington, Va. The all-electric structures, featuring low carbon concrete and mass timber, help further the company’s commitment to achieving net zero carbon emissions by 2040 and 100% renewable energy consumption by 2030. Designed by ZGF Architects, the two 22-story buildings are on track to become the largest LEED v4 Platinum buildings in the U.S.
Sustainability | Nov 1, 2023
Researchers create building air leakage detection system using a camera in real time
Researchers at the U.S. Department of Energy’s Oak Ridge National Laboratory have developed a system that uses a camera to detect air leakage from buildings in real time.