Showing a steady increase in the demand for design services, the Architecture Billings Index (ABI) continues to accelerate, as it reached its second highest level of the year.
The American Institute of Architects (AIA) reported the September ABI score was 54.3, up from a mark of 53.8 in August. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.6, down from the reading of 63.0 the 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.
Key September ABI highlights:
• Regional averages: West (60.6), South (54.1), Midwest (51.0), Northeast (50.7)
• Sector index breakdown: commercial / industrial (57.9), multi-family residential (55.6), mixed practice (55.4), institutional (50.4)
• Project inquiries index: 58.6
Note: 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
Architects | Jan 23, 2017
Why corporate branded environments matter
A branded environment has the potential to create a long-lasting impression for your intended audiences.
Architects | Jan 19, 2017
Harley Ellis Devereaux merges with Deems Lewis McKinley
The combination is expected to bolster HED’s presence in northern California and the K-12 sector.
Architects | Jan 13, 2017
Best in Architecture: 23 projects win AIA 2017 Institute Honor Awards
The Shigeru Ban-designed Aspen Art Museum and the General Motors Design Auditorium by SmithGroupJJR are among the architecture, interior architecture, and urban design projects to win.
Designers | Jan 13, 2017
The mind’s eye: Five thoughts on cognitive neuroscience and designing spaces
Measuring how the human mind responds to buildings could improve design.
Building Materials | Jan 9, 2017
Architects and researchers are developing new techniques for building in space
As setting foot on Mars becomes a more realistic goal, the search for how to best develop Architecture for the Red Planet is heating up.
Architects | Jan 5, 2017
U.S. architects can now earn licenses to practice Down Under
NCARB finalizes reciprocal agreement with Australia and New Zealand.
Architects | Jan 4, 2017
The making of visible experts: A path for seller-doers in the AEC industry
Exceptional seller-doers have the ability to ask the right questions, and more importantly, listen.
Building Team | Jan 3, 2017
How does your firm’s hit rate stack up to the AEC competition?
If your firm is not converting at least a third of project proposals when competing for new work, it may be time to reassess your marketing tactics and processes.
Architects | Dec 9, 2016
Leddy Maytum Stacy Architects receives the 2017 AIA Architecture Firm Award
LMSA is the 54th AIA Architecture Firm Award recipient.
| Dec 8, 2016
Paul Revere Williams, FAIA, awarded 2017 AIA Gold Medal
The Gold Medal honors an individual whose significant body of work has had a lasting influence on the theory and practice of architecture.