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
| Jan 14, 2014
Sherwin-Williams unveils colormix 2014
Drawing influence from fashion, science, nature, pop culture and global traditions, Sherwin-Williams introduces colormix™ 2014, which captures colors that inspire creativity and design in today’s world. The four-palette collection provides design professionals with a guide to help them define the moods they want to create and select colors for their projects.
| Jan 13, 2014
Custom exterior fabricator A. Zahner unveils free façade design software for architects
The web-based tool uses the company's factory floor like "a massive rapid prototype machine,” allowing designers to manipulate designs on the fly based on cost and other factors, according to CEO/President Bill Zahner.
| Jan 13, 2014
AEC professionals weigh in on school security
An exclusive survey reveals that Building Teams are doing their part to make the nation’s schools safer in the aftermath of the Sandy Hook tragedy.
| Jan 13, 2014
6 legislative actions to ignite the construction economy
The American Institute of Architects announced its “punch list” for Congress that, if completed, will ignite the construction economy by spurring much needed improvements in energy efficiency, infrastructure, and resiliency, and create jobs for small business.
| Jan 12, 2014
CES showcases innovations: Can any of these help you do your job better?
The Consumer Electronics Show took place this past week in Las Vegas. Known for launching new products and technologies, many of the products showcased there set the bar for future innovators. The show also signals trends to watch in technology applicable to the design and building industry.
| Jan 12, 2014
The ‘fuzz factor’ in engineering: when continuous improvement is neither
The biggest threat to human life in a building isn’t the potential of natural disasters, but the threat of human error. I believe it’s a reality that increases in probability every time a code or standard change is proposed.
| Jan 12, 2014
5 ways virtual modeling can improve facilities management
Improved space management, streamlined maintenance, and economical retrofits are among the ways building owners and facility managers can benefit from building information modeling.
| Jan 11, 2014
Getting to net-zero energy with brick masonry construction [AIA course]
When targeting net-zero energy performance, AEC professionals are advised to tackle energy demand first. This AIA course covers brick masonry's role in reducing energy consumption in buildings.
| Jan 10, 2014
What the states should do to prevent more school shootings
To tell the truth, I didn’t want to write about the terrible events of December 14, 2012, when 20 children and six adults were gunned down at Sandy Hook Elementary School in Newtown, Conn. I figured other media would provide ample coverage, and anything we did would look cheap or inappropriate. But two things turned me around.
| Jan 10, 2014
Special Report: K-12 school security in the wake of Sandy Hook
BD+C's exclusive five-part report on K-12 school security offers proven design advice, technology recommendations, and thoughtful commentary on how Building Teams can help school districts prevent, or at least mitigate, a Sandy Hook on their turf.
