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
| Feb 2, 2012
Next phase of construction begins on Scripps Prebys Cardiovascular Institute
$456 million Institute will be comprehensive heart center for 21st Century.
| Feb 1, 2012
Increase notched in construction jobs, but unemployment rate still at 16%
AGC officials said that construction employment likely benefited from unseasonably warm weather across much of the country that extended the building season.
| Feb 1, 2012
Replacement windows eliminate weak link in the building envelope
Replacement or retrofit can help keep energy costs from going out the window.
| Feb 1, 2012
‘Augmented reality’ comes to the job site
A new software tool derived from virtual reality is helping Building Teams use the power of BIM models more effectively.
| Feb 1, 2012
New ways to work with wood
New products like cross-laminated timber are spurring interest in wood as a structural material.
| Feb 1, 2012
Blackney Hayes designs school for students with learning differences
The 63,500 sf building allows AIM to consolidate its previous two locations under one roof, with room to expand in the future.
| Feb 1, 2012
Two new research buildings dedicated at the University of South Carolina
The two buildings add 208,000 square feet of collaborative research space to the campus.
| Feb 1, 2012
List of Top 10 States for LEED Green Buildings released?
USGBC releases list of top U.S. states for LEED-certified projects in 2011.
| Feb 1, 2012
ULI and Greenprint Foundation create ULI Greenprint Center for Building Performance
Member-to-member information exchange measures energy use, carbon footprint of commercial portfolios.
| Feb 1, 2012
AEC mergers and acquisitions up in 2011, expected to surge in 2012
Morrissey Goodale tracked 171 domestic M&A deals, representing a 12.5% increase over 2010 and a return to levels not seen since 2007.