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
Giants 400 | Jan 12, 2024
Top 10 Casino Architecture Firms for 2023
JCJ Architecture, HBG Design, Gensler, and WATG top BD+C's ranking of the nation's largest casino architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Senior Living Design | Jan 11, 2024
Designing for personal technology is crucial for senior living facilities
Today’s seniors are increasingly tech savvy. It isn’t enough to give senior living residents a pre-determined bundle of technology and assume that they’ll be satisfied.
Giants 400 | Jan 11, 2024
Top 40 Convention Center Architecture Firms for 2023
TVS, Populous, Arcadis North America, Gensler, and EUA top BD+C's ranking of the nation's largest convention center and event facility architecture and architecture engineering (AE) firms for 2023, as reported in the 2023 Giants 400 Report.
Architects | Jan 10, 2024
Award-winning civic design firm RossDrulisCusenbery joins DLR Group
DLR Group today announced the acquisition of Sonoma, California based civic and public safety design firm RossDrulisCusenbery (RDC). The addition of RDC adds focused design excellence of new building types to DLR Group’s global Justice+Civic studio.
Museums | Jan 8, 2024
Achieving an ideal visitor experience with the ADROIT approach
Alan Reed, FAIA, LEED AP, shares his strategy for crafting logical, significant visitor experiences: The ADROIT approach.
Designers | Jan 8, 2024
DLR Group adds executive leaders
DLR Group Chief Executive Officer Steven McKay, AIA, RIBA, announced new executive leaders for the 100% employee-owned, globally integrated design firm.
AEC Tech | Jan 8, 2024
What's driving the surge of digital transformation in AEC today?
For centuries, the AEC industry has clung to traditional methods and legacy processes—seated patterns that have bred resistance to change. This has made the adoption of new technologies a slow and hesitant process.
K-12 Schools | Jan 8, 2024
Video: Learn how DLR Group converted two big-box stores into an early education center
Learn how the North Kansas City (Mo.) School District and DLR Group adapted two big-box stores into a 115,000-sf early education center offering services for children with special needs.
Green | Jan 8, 2024
DOE releases RFI on developing national definition for a Zero Emissions Building
The Department of Energy released a Request for Information (RFI) for feedback from industry, academia, research laboratories, government agencies, and other stakeholders on a draft national definition for a Zero Emissions Building.
Codes and Standards | Jan 8, 2024
Australia to be first country to ban engineered stone countertops
In 2024, Australia will be the first country to ban engineered stone countertops. The ban came after a years-long campaign supported by doctors, trade unions, and workers over concerns that the material was causing increased silicosis cases among workers cutting and handling it.
