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 16, 2012
Mid-Continent Tower wins 25 Year Award from AIA Eastern Oklahoma
Designed by Dewberry, iconic tower defines Tulsa’s skyline.
| Jan 16, 2012
Suffolk completes construction on progressive operating suite
5,700 square-foot operating suite to be test bed for next generation of imaged-guided operating techniques.
| Jan 15, 2012
Hollister Construction Services oversees interior office fit-out for Harding Loevner
The work includes constructing open space areas, new conference, trading and training rooms, along with multiple kitchenettes.
| Jan 15, 2012
Smith Consulting Architects designs Flower Hill Promenade expansion in Del Mar, Calif.
The $22 million expansion includes a 75,000-square-foot, two-story retail/office building and a 397-car parking structure, along with parking and circulation improvements and new landscaping throughout.
| Jan 15, 2012
535 Madison Avenue achieves LEED Gold certification
Class-A commercial building meets sustainability requirements of LEED Program.
| Jan 12, 2012
CSHQA receives AIA Northwest & Pacific Region Merit Award for Idaho State Capitol restoration
After a century of service, use, and countless modifications which eroded the historical character of the building and grounds, the restoration brought the 200,000-sf building back to its former grandeur by restoring historical elements, preserving existing materials, and rehabilitating spaces for contemporary uses.
| Jan 12, 2012
Stellar earns construction industry's most prestigious safety award
Now widely accepted as the construction industry's standard measure of safety performance, the STEP awards were established in 1989 to evaluate and improve safety practices and recognize outstanding safety efforts.
| Jan 12, 2012
Building independence: New take on female power
Memoir explores historic engineering project, women's empowerment era.
| Jan 12, 2012
3M takes part in Better Buildings Challenge
As a partner in the challenge, 3M has committed to reduce energy use by 25% in 78 of its plants, encompassing nearly 38 million-sf of building space.
| Jan 11, 2012
DOE announces guide for 50% more energy efficient retail buildings
The 50% AEDG series provides a practical approach for designers and builders of retail stores, and other major commercial building types, to achieve 50% energy savings compared to the building energy code used in many parts of the nation.