Washington, D.C. – November 17, 2010 – Following the first positive reading since January 2008, the Architecture Billings Index (ABI) dropped nearly two points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the October ABI score was 48.7, down from a reading of 50.4 the previous month. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.7, down slightly from a nearly three-year high mark of 62.3 in September.
“This is disappointing news, but not altogether that surprising,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “We were anticipating a slow recovery period and it is likely that there will be some fits and starts before conditions show consistent improvement. Right now, reluctance from lending institutions to provide credit for construction projects and a sluggish economy are the main impediments to a revival of the design and construction industry.”
Key October ABI highlights:
Regional averages: Northeast (54.5), Midwest (51.8), South (48.6), West (44.3)
Sector index breakdown: commercial / industrial (54.5), institutional (50.8), multi-family residential (49.1), mixed practice (43.2)
Project inquiries index: 61.7
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
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org
Related Stories
Architects | Feb 15, 2018
AIASF Equity by Design to launch 2018 Equity in Architecture Survey
AIA San Francisco (AIASF) and the Equity by Design Committee, launched the third national Equity in Architecture Survey on February 12, 2018. Building upon the survey conducted in 2016, the third survey will further advance the national movement for equitable practice in the profession.
Urban Planning | Feb 14, 2018
6 urban design trends to watch in 2018
2017 saw the continuation of the evolution of expectations on the part of consumers, developers, office workers, and cities.
Office Buildings | Feb 13, 2018
Office market vacancy rate at 10-year low
Cautious development and healthy absorption across major markets contributed to the decline in vacancy, according to a new Transwestern report.
Architects | Feb 12, 2018
AIA selects seven individuals to receive the 2018 Associates Award
The recipients will be honored at the AIA Conference on Architecture 2018 in New York City.
Architects | Feb 9, 2018
AIA's 2018 Young Architects Award honors 18 recipients
The Young Architects Award recipients will be honored at the AIA Conference on Architecture 2018 in New York City.
Architects | Feb 8, 2018
Three ways cities could evolve 2018
Cities change constantly, but given the numerous disruptive factors spanning technology, policy, climate and more that will impact 2018 – it could prove to be a year of dynamic change for our urban fabric.
Architects | Feb 7, 2018
8 inefficiencies in the architecture + design industry (and possible solutions)
Matthew Rosenberg has identified 8 major inefficiencies in the architecture and design industry, as well as a solution for each of them.
Architects | Feb 5, 2018
Little names new Corporate President and COO
International architecture and design firm Little has appointed Carolyn Rickard-Brideau as its new Corporate President, and Charles Todd as its Chief Operating Officer.
Architects | Feb 1, 2018
How to generate architecture leads
One of the first steps to increasing leads for your design firm is to acknowledge that all leads are not equal, writes Hinge’s Karl Feldman.
Healthcare Facilities | Feb 1, 2018
Early supplier engagement provides exceptional project outcomes
Efficient supply chains enable companies to be more competitive in the marketplace.
