flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Architecture Billings Index in the negative for second consecutive month

Architecture Billings Index in the negative for second consecutive month

Most favorable business conditions in the South region


By AIA | May 21, 2014
Photo: Greg Goebel via Wikimedia Commons
Photo: Greg Goebel via Wikimedia Commons

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

University Buildings | Oct 18, 2022

A carbon-neutral-ready university campus opens in Hong Kong

In early September, the Hong Kong University of Science and Technology (HKUST) officially opened its new, KPF-designed campus in Nansha, Guangzhou (GZ).

Market Data | Oct 17, 2022

Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey

The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.

Codes and Standards | Oct 17, 2022

Ambitious state EV adoption goals put pressure on multifamily owners to provide chargers

California’s recently announced ban on the sale of new gas-powered vehicles starting in 2035—and New York’s recent decision to follow suit—are putting pressure on multifamily property owners to install charging stations for tenants.

Justice Facilities | Oct 17, 2022

San Antonio’s new courthouse aims to provide safety and security while also welcoming the public

The San Antonio Federal Courthouse, which opened earlier this year, replaces a courthouse that had been constructed as a pavilion for the 1968 World’s Fair.

Market Data | Oct 14, 2022

ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady

Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.

| Oct 13, 2022

Boston’s proposed net-zero emissions code has developers concerned

Developers have raised serious concerns over a proposed new energy code by the City of Boston that would require newly constructed buildings over 20,000 sf to immediately hit net-zero emissions goals.

Education Facilities | Oct 13, 2022

A 44-acre campus serves as a professional retreat for public-school educators in Texas

A first-of-its-kind facility for public schools in Texas, the Holdsworth Center serves as a retreat for public educators, supporting reflection and dialogue. 

Building Team | Oct 12, 2022

Real estate development practices worsened impact of Hurricane Ian

A century ago, the southwest Florida coast was mostly swamps and shoals, prone to frequent flooding and almost impossible to navigate by boat.

Market Data | Oct 12, 2022

ABC: Construction Input Prices Inched Down in September; Up 41% Since February 2020

Construction input prices dipped 0.1% in September compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.

Hotel Facilities | Oct 12, 2022

Global hotel chain citizenM opens its first Chicago property and its fifth of the year

citizenM, a global chain of affordable luxury hotels, has opened its first Chicago property—its fifth opening of 2022.

boombox1
boombox2
native1

More In Category



Urban Planning

The magic of L.A.’s Melrose Mile

Great streets are generally not initially curated or willed into being. Rather, they emerge organically from unintentional synergies of commercial, business, cultural and economic drivers. L.A.’s Melrose Avenue is a prime example. 


Curtain Wall

7 steps to investigating curtain wall leaks

It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021