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 6, 2011
Ellerbe Becket now operating as AECOM
*/ The architecture, interiors and engineering firm Ellerbe Becket, which joined AECOM in 2009, has fully transitioned to operating as AECOM as of May 2, 2011.
| May 2, 2011
URS acquires Apptis Holdings, a federal IT service provider
SAN FRANCISCO, CA and CHANTILLY, VA– April 28, 2011 – URS Corporation and Apptis Holdings, Inc., a leading provider of information technology and communications services to the federal government, announced that they have signed a definitive agreement under which URS will acquire Apptis.
| May 2, 2011
Perkins+Will merges with Vermeulen Hind Architects, offically launches Perkins+Will Canada
Ottawa and Hamilton-based Vermeulen Hind Architects, one of Canada’s leading healthcare architectural firms, has merged with Perkins+Will. Vermeulen Hind joins Toronto-based Shore Tilbe Perkins+Will and Vancouver-based Busby Perkins+Will to create Perkins+Will Canada. The combination marks the official launch of Perkins+Will Canada, a merge that will establish the firm as among the pre-eminent interdisciplinary design practices in Canada.
| Apr 26, 2011
Ed Mazria on how NYC can achieve carbon neutrality in buildings by 2030
The New York Chapter of the American Institute of Architects invited Mr. Mazria to present a keynote lecture to launch its 2030 training program. In advance of that lecture, Jacob Slevin, co-founder of DesignerPages.com and a contributor to The Huffington Post, interviewed Mazria about creating a sustainable vision for the future and how New York City's architects and designers can rise to the occasion.
| Apr 26, 2011
Video: Are China's ghost cities a bubble waiting to burst?
It's estimated that 10 new cities are being built in China every year, but many are virtually deserted. Retail space remains empty and hundreds of apartments are vacant, but the Chinese government is more concerned with maintaining economic growth—and building cities is one way of achieving that goal.
| Apr 25, 2011
Earn $300 million by NOT hiring Frank Gehry
An Iowa philanthropist and architecture aficionado—who wishes to remain anonymous—is offering a $300 million “reward” to any city anywhere in the world that’s brave enough to hire someone other than Frank Gehry to design its new art museum.
| Apr 20, 2011
Marketing firm Funtion: to host “Construct. Build. Evolve.”
Function:, an integrated marketing agency that specializes in reaching the architecture, building and design community, is hosting an interactive art event, “Construct. Build. Evolve.” in Atlanta’s Piedmont Park on Thursday April 21, 2011 at 11:00AM EDT. During the event attendees will be asked to answer the question, “how would you build the future?” to rouse dialogue and discover fresh ideas for the future of the built environment.
| Apr 20, 2011
Architecture Billings Index: new projects inquiry index up significantly from February
The American Institute of Architects (AIA) reported the March ABI score was 50.5, a negligible decrease from a reading of 50.6 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.7, up significantly from a mark of 56.4 in February.
