Washington, D.C. – January 19, 2010 – On the heels of its highest mark since 2007, the Architecture Billings Index (ABI) jumped more than two points in December. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the December ABI score was 54.2, up from a reading of 52.0 the previous month. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 62.6, up slightly from a mark of 61.4 in November.
“This is more promising news that the design and construction industry is continuing to move toward a recovery,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. However, historically December is the most unpredictable month from a business standpoint, and therefore the most difficult month from which to interpret a trend. The coming quarter will give us a much better sense of the strength of the apparent upturn in design activity. ”
Key December ABI highlights:
Regional averages: Northeast (55.3), South (54.8), Midwest (52.9), West (48.4)
Sector index breakdown: multi-family residential (60.1), commercial / industrial (52.7), institutional (50.6), mixed practice (47.8)
Project inquiries index: 62.6
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. Twitter: https://twitter.com/AIA_Media
Related Stories
Codes and Standards | Jul 12, 2022
USGBC sets out principles for LEED’s future
The U.S. Green Building Council recently published a report containing principles outlining how LEED will evolve.
Building Team | Jul 12, 2022
10 resource reduction measures for more efficient and sustainable biopharma facilities
Resource reduction measures are solutions that can lead to lifecycle energy and cost savings for a favorable return on investment while simultaneously improving resiliency and promoting health and wellness in your facility.
Office Buildings | Jul 12, 2022
Miami office tower nears completion, topping off at 55 stories
In Miami, construction of OKO Group and Cain International’s 830 Brickell office tower is nearing completion.
University Buildings | Jul 11, 2022
Student life design impacts campus wellness
As interior designers, we have the opportunity and responsibility to help students achieve deeper levels of engagement in their learning, social involvement, and personal growth on college campuses.
Museums | Jul 11, 2022
Denmark opens a museum that tells the stories of refugees worldwide
Located on the site of Denmark’s largest World War II refugee camp, the new Refugee Museum of Denmark, FLUGT, tells the stories of refugees from the camp as well as refugees worldwide.
Codes and Standards | Jul 8, 2022
Inefficient supply chains, outdated project delivery systems hamper construction investment
Constructing and justifying the cost of physical assets such as a manufacturing plant is much more difficult than it was decades ago, according to a report by Steffen Fuchs, senior partner with McKinsey & Company.
Airports | Jul 8, 2022
Phoenix Sky Harbor Airport’s new terminal prioritizes passenger experience and sustainability
McCarthy Building Companies recently completed construction of the final concourse in Terminal 4 at Phoenix Sky Harbor International Airport.
Architects | Jul 7, 2022
Page acquires AE giant EYP to form 1,300-person international design firm
The combined firm will “be able to invest in research and thought leadership to co-create with our clients,” stated Page CEO Thomas McCarthy.
Building Team | Jul 7, 2022
Report explores improving architect/contractor relationship
A new study by the American Institute of Architects and the Associated General Contractors of America focuses on improving the relationship between architects and contractors.
Airports | Jul 7, 2022
Love at first flight: The power of first impressions in airports
As architects, how we design a terminal and choreograph the passenger experience can stir up strong feelings.