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
| Mar 21, 2014
Pier Carlo Bontempi to receive Richard H. Driehaus Prize from Notre Dame
Established in 2003 by the Notre Dame School of Architecture, the $200,000 Richard H. Driehaus Prize is awarded to a living architect whose work embodies the highest ideals of traditional and classical architecture in contemporary society, and creates a positive cultural, environmental and artistic impact.
| Mar 21, 2014
How to get more referrals
If you’re having a hard time attracting new referrals, here are a few techniques for increasing the number of interactions with potential clients.
| Mar 20, 2014
Common EIFS failures, and how to prevent them
Poor workmanship, impact damage, building movement, and incompatible or unsound substrate are among the major culprits of EIFS problems.
| Mar 20, 2014
D.C. breaks ground on $2B mega waterfront development [slideshow]
When complete, the Wharf will feature approximately 3 million sf of new residential, office, hotel, retail, cultural, and public uses, including waterfront parks, promenades, piers, and docks.
| Mar 20, 2014
13 dazzling wood building designs [slideshow]
From bold structural glulam designs to striking textured wall and ceiling schemes, these award-winning building projects showcase the design possibilities using wood.
| Mar 20, 2014
Fluor defines the future 7D deliverable without losing sight of real results today
A fascinating client story by Fluor SVP Robert Prieto reminds us that sometimes it’s the simplest details that can bring about real results today—and we shouldn’t overlook them, even as we push to change the future state of project facilitation.
| Mar 19, 2014
Architecture Billings Index shows slight improvement
The American Institute of Architects (AIA) reported that the February ABI score was 50.7, up slightly from a mark of 50.4 in January.
| Mar 19, 2014
Gehry, Zaha, Foster, Meier: Vote for your top 'starchitect' in this March Madness design legends tourney
Fast Company's Bracket Madness tournament pits 32 designers against each other to see who truly is the world's greatest living designer.
| Mar 19, 2014
Is it time to start selecting your own clients?
Will 2014 be the year that design firms start selecting the clients they want rather than getting in line with competitors to respond to RFPs? That’s the question posed by a recent thought-provoking article.
| Mar 19, 2014
How to develop a healthcare capital project using a 'true north charter'
Because healthcare projects take years to implement, developing a true north charter is essential for keeping the entire team on track and moving in the right direction.
