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
| Oct 13, 2010
Biloxi’s convention center bigger, better after Katrina
The Mississippi Coast Coliseum and Convention Center in Biloxi is once again open for business following a renovation and expansion necessitated by Hurricane Katrina.
| Oct 13, 2010
Tower commemorates Lewis & Clark’s historic expedition
The $4.8 million Lewis and Clark Confluence Tower in Hartford, Ill., commemorates explorers Meriwether Lewis and William Clark at the point where their trek to the Pacific Ocean began—the confluence of the Mississippi and Missouri Rivers.
| Oct 13, 2010
Maryland replacement hospital expands care, changes name
The new $120 million Meritus Regional Medical Center in Hagerstown, Md., has 267 beds, 17 operating rooms with high-resolution video screens, a special care level II nursery, and an emergency room with 53 treatment rooms, two trauma rooms, and two cardiac rooms.
| Oct 13, 2010
Campus building gives students a taste of the business world
William R. Hough Hall is the new home of the Warrington College of Business Administration at the University of Florida in Gainesville. The $17.6 million, 70,000-sf building gives students access to the latest technology, including a lab that simulates the stock exchange.
| Oct 13, 2010
Science building supports enrollment increases
The new Kluge-Moses Science Building at Piedmont Virginia Community College, in Charlottesville, is part of a campus update designed and managed by the Lukmire Partnership. The 34,000-sf building is designed to be both a focal point of the college and a recruitment mechanism to get more students enrolling in healthcare programs.
| Oct 13, 2010
Cancer hospital plans fifth treatment center
Construction is set to start in December on the new Cancer Treatment Centers of America’s $55 million hospital in Newnan, Ga. The 225,000-sf facility will have 25 universal inpatient beds, two linear accelerator vaults, an HDR/Brachy therapy vault, and a radiology and imaging unit.
| Oct 13, 2010
Apartment complex will offer affordable green housing
Urban Housing Communities, KTGY Group, and the City of Big Bear Lake (Calif.) Improvement Agency are collaborating on The Crossings at Big Bear Lake, the first apartment complex in the city to offer residents affordable, eco-friendly homes. KTGY designed 28 two-bedroom, two-story townhomes and 14 three-bedroom, single-story flats, averaging 1,100 sf each.
| Oct 13, 2010
Residences bring students, faculty together in the Middle East
A new residence complex is in design for United Arab Emirates University in Al Ain, UAE, near Abu Dhabi. Plans for the 120-acre mixed-use development include 710 clustered townhomes and apartments for students and faculty and common areas for community activities.
| Oct 13, 2010
HQ renovations aim for modern look
Gerner Kronick + Valcarcel Architects’ renovations to the Commonwealth Bank of Australia’s New York City headquarters will feature a reworked reception lobby with back-painted glass, silk-screened logos, and a video wall.
| Oct 13, 2010
New health center to focus on education and awareness
Construction is getting pumped up at the new Anschutz Health and Wellness Center at the University of Colorado, Denver. The four-story, 94,000-sf building will focus on healthy lifestyles and disease prevention.