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
| Oct 10, 2013
Behind the scenes at the U40 Summit: See the $5,000 U40 Vision competition in progress [slideshow]
Sixty-five up-and-coming AEC leaders are battling for $5,000 in prizes today at BD+C's Under 40 Leadership Summit in San Francisco.
| Oct 10, 2013
Arthur Gensler to architects: Don't give away your ideas
The founder of Gensler advises dozens of up-and-coming AEC professionals at BD+C's Under 40 Leadership Summit in San Francisco.
| Oct 9, 2013
From power plant to office: Ambler Boiler House conversion
The shell of a 19th-century industrial plant is converted into three levels of modern office space.
| Oct 7, 2013
10 award-winning metal building projects
The FDNY Fireboat Firehouse in New York and the Cirrus Logic Building in Austin, Texas, are among nine projects named winners of the 2013 Chairman’s Award by the Metal Construction Association for outstanding design and construction.
| Oct 7, 2013
Progressive steel joist and metal decking design [AIA course]
This three-part course takes a building owner’s perspective on the range of cost and performance improvements that are possible when using a more design-analytical and collaborative approach to steel joist and metal decking construction.
Sponsored | | Oct 7, 2013
Bridging the digital divide between the BIM haves and have nots
There's no doubt that BIM is the future of design. But for many firms, finding a bridge to access rich model data and share it with those typically left on the sidelines can be the difference between winning a bid or not.
| Oct 7, 2013
How to streamline your operations
The average U.S. office worker generates two pounds of paper each day, according to the EPA. Ninety percent of that trash is made up of printed materials: marketing reports, project drafts, copy machine mistakes, and unwanted mail. Here are a few ways AEC firms can streamline their management processes.
| Oct 7, 2013
Reimagining the metal shipping container
With origins tracing back to the mid-1950s, the modern metal shipping container continues to serve as a secure, practical vessel for transporting valuable materials. However, these reusable steel boxes have recently garnered considerable attention from architects and constructors as attractive building materials.
| Oct 4, 2013
Sydney to get world's tallest 'living' façade
The One Central Park Tower development consists of two, 380-foot-tall towers covered in a series of living walls and vertical gardens that will extend the full height of the buildings.
| Oct 4, 2013
Nifty video shows planned development of La Sagrada Familia basilica
After 144 years, construction on Gaudi's iconic Barcelona edifice is picking up speed, with a projected end date of 2026.
