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
Women in Design+Construction | Jun 2, 2022
Women in Architecture: How HMC Pioneers Gender Equality
A survey by the Association of Collegiate Schools of Architecture (ACSA) shows that while women account for nearly half of graduates from architecture programs, they only make up about 15 percent of licensed architects.
Codes and Standards | Jun 2, 2022
New design guide for hybrid steel-mass timber frames released
The American Institute of Steel Construction (AISC) has released the first-ever set of U.S. recommendations for hybrid steel frames with mass timber floors, according to a news release.
Mass Timber | Jun 2, 2022
Brooklyn is home to New York City’s first mass timber condo building
In the Brooklyn neighborhood of Park Slope, the newly completed Timber House is New York City’s first mass timber condominium building and its largest mass timber project (by height and square footage).
Codes and Standards | Jun 1, 2022
HKS, U. of Texas Dallas partner on brain health study
HKS and The University of Texas at Dallas’ Center for BrainHealth are conducting a six-month study to improve the way the firm’s employees work, collaborate, and innovate, both individually and as an organization, according to a news release.
Building Team | Jun 1, 2022
Pennsylvania’s Longwood Gardens to get a $250 million transformation
Longwood Gardens, a botanical garden with about 1,100 acres in Pennsylvania’s Brandywine Valley, recently announced plans to transform its core area of conservatory gardens.
Mass Timber | May 31, 2022
Tall mass timber buildings number 139 worldwide
An audit of tall mass timber buildings turned up 139 such structures around the world either complete, under construction, or proposed.
Hotel Facilities | May 31, 2022
Checking out: Tips for converting hotels to housing
Many building owners are considering repositioning their hotels into another property type, such as senior living communities and rental apartments. Here's advice for getting started.
Museums | May 31, 2022
University of Texas at Dallas breaks ground on new 12-acre cultural district
The University of Texas at Dallas (UT Dallas) recently broke ground on the Crow Museum of Asian Art, the first phase of a new 12-acre cultural district on campus.
BAS and Security | May 26, 2022
Can your intelligent building outsmart hackers?
ESD's security services studio leader Coleman Wolf offers tips, advice, and lessons for protecting real estate assets from cyberattacks.
Sports and Recreational Facilities | May 26, 2022
WNBA practice facility will offer training opportunities for female athletes and youth
The Seattle Storm’s Center for Basketball Performance will feature amenities for community youth, including basketball courts, a nutrition center, and strength and conditioning training spaces.
