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
Architects | Oct 1, 2020
BIG imagines how we could live on the moon
The architecture firm has partnered with ICON on the project.
Architects | Sep 30, 2020
Sir David Adjaye OBE to receive 2021 Royal Gold Medal for Architecture
His practice, Adjaye Associates, was founded in 2000 and today has studios in Accra, London and New York, with projects across the world.
Coronavirus | Sep 28, 2020
Evaluating and investing resources to navigate past the COVID-19 pandemic
As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.
Coronavirus | Sep 24, 2020
The Weekly show: Building optimization tech, the future of smart cities, and storm shelter design
The September 24 episode of BD+C's "The Weekly" is available for viewing on demand.
Healthcare Facilities | Sep 10, 2020
Easing the oncology journey: The role of urgent care
Oncology patients are better served when they’re connected to the right staff.
Airports | Sep 10, 2020
The Weekly show: Curtis Fentress, FAIA, on airport design, and how P3s are keeping university projects alive
The September 10 episode of BD+C's "The Weekly" is available for viewing on demand.
Architects | Sep 8, 2020
The New City project by Eric Owen Moss Architects receives AIA’s Twenty-five Year Award
AIA’s Twenty-five Year Award is conferred on a building that has set a precedent for the last 25-35 years and continues to set standards of excellence for its architectural design and significance.
Architects | Sep 1, 2020
An evidenced-based approach to elevate the workplace experience
A new NBBJ report presents design concepts for providing people with opportunities to recharge and engage in the workplace.
K-12 Schools | Sep 1, 2020
The rise of inquiry-based learning in K-12 communities
Inquiry-based education offers a methodology that does not rely solely on the educator being the lead in all learning.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.