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
| Jun 29, 2012
Guardian launches industry’s first glass visualizer for interior design
Online tool allows designers to explore the possibilities of glass.
| Jun 28, 2012
Federal applications of renewable energy
U.S. Army Fort Knox: Using the Earth for space heating and cooling. The U.S. Department of Energy’s (DOE) Federal Energy Management Program (FEMP) facilitates the Federal Government’s implementation of sound, cost-effective energy management and investment practices to enhance the nation’s energy security and environmental stewardship.
| Jun 27, 2012
HDR opens office in Beijing
The Beijing office is HDR’s second location in China; the firm’s other office is in Shanghai.
| Jun 27, 2012
KBE Building wins honor for Armed Forces Reserve Center
The construction phase was completed in just 16 months.
| Jun 27, 2012
SOM’s Baker receives honorary doctorate in engineering from Heriot-Watt University
Baker recognized for his career and influential contribution in the field of structural engineering.
| Jun 25, 2012
Living green wall planned for InterContinental Chicago
Project, with price tag of $2 million to $3 million, needs council approval.
| Jun 25, 2012
AIA-NJ honors DMR Architects
The academic building, completed in 2009, provides classrooms, computer labs, faculty offices, and meeting spaces for the College, which has a steady 7% annual increase in enrollment.
| Jun 25, 2012
Thornton Tomasetti appoints Hofmeister and Zhu to board of directors
The addition of Hofmeister and Zhu brings the number of directors to 10.
| Jun 20, 2012
WHR’s Tradewell Fellowship Marks 15th Anniversary
Fellowship program marks milestone with announcement of new program curator and 2012 fellow
| Jun 15, 2012
Beck Group/Atlanta wins AGC Build Georgia Award
Site-specific safety plan, BIM analysis and third-party structural review contributed to successful implementation.