The Architecture Billings Index (ABI) has reverted into negative territory for the last two months. The American Institute of Architects (AIA) reported the March ABI score was 49.6, up slightly from a mark of 48.8 in March. This score reflects a decrease in design activity (any score above 50 indicates an increase in billings).
The new projects inquiry index was 59.1, up from the reading of 57.9 the previous month.
The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in April was 54.6.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.
“Despite an easing in demand for architecture services over the last couple of months, there is a pervading sense of optimism that business conditions are poised to improve as the year moves on,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “With a healthy figure for design contracts this should translate into improved billings in the near future.”
Key April ABI highlights:
- Regional averages: South (57.5),West (48.9), Midwest 47.0), Northeast (42.9)
- Sector index breakdown: multi-family residential (52.6), commercial / industrial (50.2), mixed practice (50.7), institutional (47.1)
- Project inquiries index: 59.1
- Design contracts index: 54.6
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group<http://www.aia.org/practicing/economics>, 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 recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA web site<http://www.aia.org/practicing/economics/AIAS076265>.
Related Stories
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
High-rise Construction | Apr 14, 2022
Seattle’s high-rise convention center nears completion
The new Washington State Convention Center Summit Building—billed as the first high-rise convention center in North America—is on track to complete most of its construction later this year.
Building Team | Apr 14, 2022
TLC Engineering Solutions, Inc. acquires Moye I.T. Consulting, LLC
TLC Engineering Solutions, Inc. (TLC) is excited to announce that Moye I.T. Consulting, LLC (Moye Consulting) has joined the TLC team, expanding the breadth of its IT and Technology capabilities, as well as its national portfolio.
Wood | Apr 13, 2022
Mass timber: Multifamily’s next big building system
Mass timber construction experts offer advice on how to use prefabricated wood systems to help you reach for the heights with your next apartment or condominium project.
AEC Tech | Apr 13, 2022
Morphosis designs EV charging station for automaker Genesis
LA-based design and architecture firm Morphosis has partnered with automotive luxury brand Genesis to bring their signature brand and styling, attention-to-detail, and seamless customer experience to the design of Electric Vehicle Charging (EVC) Stations.
AEC Tech | Apr 13, 2022
A robot automates elevator installation
Schindler—which manufactures and installs elevators, escalators, and moving walkways—has created a robot called R.I.S.E. (robotic installation system for elevators) to help install lifts in high-rise buildings.
Government Buildings | Apr 11, 2022
Milan’s new US Consulate celebrates Italian design
In Milan, Italy, the new U.S. Consulate General broke ground on April 6. Managed by Overseas Buildings Operations (OBO), a U.S. government agency that directs overseas builds, the 10-acre campus will feature a new Consulate building, as well as the restoration of the site’s historic Liberty Building and reconstruction of a pavilion on the 80,000-square-foot parade ground.
Sponsored | BD+C University Course | Apr 10, 2022
Designing with commercial and industrial insulated metal wall panels
Discover the characteristics, benefits and design options for commercial/industrial buildings using insulated metal panels (IMPs). Recognize the factors affecting panel spans and the relationship of these to structural supports. Gain knowledge of IMP code compliance.
Laboratories | Apr 7, 2022
North Carolina's latest play for biotech real estate development
The Tar Heel State is among a growing number of markets rolling out the welcome mat for lab spaces.
Healthcare Facilities | Apr 7, 2022
Visibility breeds traffic in healthcare design
Ryan Companies has completed several healthcare projects that gain exposure by being near retail stores or office buildings.