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
| Oct 4, 2011
GREENBUILD 2011: Nearly seamless highly insulated glass curtain-wall system introduced
Low insulation value reflects value of entire curtain-wall system.
| Oct 4, 2011
GREENBUILD 2011: Ready-to-use wood primer unveiled
Maintains strong UV protection, clarity even with application of lighter, natural wood tones.
| Oct 4, 2011
GREENBUILD 2011: Two new recycled glass products announced
The two collections offer both larger and smaller particulates.
| Oct 4, 2011
GREENBUILD 2011: Mythic Paint launches two new paint products
A high performance paint, and a combination paint and primer now available.
| Oct 4, 2011
GREENBUILD 2011: Wall protection line now eligible to contribute to LEED Pilot Credit 43
The Cradle-to-Cradle Certified Wall Protection Line offers an additional option for customers to achieve LEED project certification.
| Oct 3, 2011
Magellan Development Group opens Village Market in Chicago’s Lakeshore East neighborhood
Magellan Development Group and Hanwha Engineering & Construction are joint-venture development partners on the project. The Village Market was designed for Silver LEED certification by Loewenberg Architects and built by McHugh Construction.
| Oct 3, 2011
Balance bunker and Phase III projects breaks ground at Mitsubishi Plant in Georgia
The facility, a modification of similar facilities used by Mitsubishi Heavy Industries, Inc. (MHI) in Japan, was designed by a joint design team of engineers and architects from The Austin Company of Cleveland, Ohio, MPSA and MHI.
| Oct 3, 2011
Cauceglia to lead Allsteel’s global accounts
Cauceglia is responsible for developing new global business strategies and expanding existing business within the Fortune 500 sector.
| Sep 30, 2011
BBS Architects & Engineers completes welcoming center at St. Charles Resurrection Cemetery
The new structure serves as the cemetery's focal architectural point and center of operations.
| Sep 30, 2011
Kilbourn joins Perkins Eastman
Kilbourn joins with more than 28 years of design and planning experience for communities, buildings, and interiors in hospitality, retail/mixed-use, corporate office, and healthcare.