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
| May 20, 2014
Using fire-rated glass in exterior applications
Fire-rated glazing and framing assemblies are just as beneficial on building exteriors as they are on the inside. But knowing how to select the correct fire-rated glass for exterior applications can be confusing. SPONSORED CONTENT
| May 20, 2014
World's best new skyscrapers: Renzo Piano's The Shard, China's 'doughnut hotel' voted to Emporis list
Eight other high-rise projects were named Emporis Skyscraper Award winners, including DC Tower 1 by Dominique Perrault Architecture and Tour Carpe Diem by Robert A.M. Stern.
| May 19, 2014
What can architects learn from nature’s 3.8 billion years of experience?
In a new report, HOK and Biomimicry 3.8 partnered to study how lessons from the temperate broadleaf forest biome, which houses many of the world’s largest population centers, can inform the design of the built environment.
| May 19, 2014
Why e-commerce won't kill 'bricks and mortar' retail sector
Despite emerging structural challenges and newly-announced store closings, such as those of Radio Shack and Office Depot, the U.S. retail sector has continued on its solid recovery.
| May 16, 2014
BoA, USGBC to offer $25,000 grants for green affordable housing projects
The Affordable Green Neighborhoods Grant Program will offer 14 grants to developers of affordable housing in North America who are committed to building sustainable communities through the LEED for Neighborhood Development program.
| May 16, 2014
HED expands leadership in San Diego
Neville Willsmore, Thomas Christian join leadership team for Harley Ellis Devereaux.
| May 16, 2014
Toyo Ito leads petition to scrap Zaha Hadid's 2020 Olympic Stadium project
Ito and other Japanese architects cite excessive costs, massive size, and the project's potentially negative impact on surrounding public spaces as reasons for nixing Hadid's plan.
| May 15, 2014
Paints, coatings, and sealants: 10 new ways to seal the deal
Color-shifting finishes, dry-erase surfaces, and stain-blocking paints are highlighted in this round up of new offerings in paints, coatings, sealants, and finishes.
| May 15, 2014
Biking to work up by 60 percent, according to Census Bureau report
Many U.S. cities are seeing an increase in bicycle commuters, according to new a U.S. Census Bureau report. While bicyclists still account for just 0.6% of all commuters, some of the nation's largest cities have more than doubled their rates since 2000.
| May 15, 2014
'Virtually indestructible': Utah architect applies thin-shell dome concept for safer schools
At $94 a square foot and "virtually indestructible," some school districts in Utah are opting to build concrete dome schools in lieu of traditional structures.
