After five months of positive readings, the Architecture Billings Index (ABI) has fallen into negative terrain. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the April ABI score was 48.4, following a mark of 50.4 in March. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 54.4, down from mark of 56.6 the previous month.
“Considering the continued volatility in the overall economy, this decline in demand for design services isn’t terribly surprising,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Also, favorable conditions during the winter months may have accelerated design billings, producing a pause in projects that have moved ahead faster than expected.”
Key April ABI highlights:
- Regional averages: Northeast (51.0), Midwest (50.1), South (49.0), West (48.0)
- Sector index breakdown: commercial / industrial (53.8), multi-family residential (50.5), institutional (46.6), mixed practice (45.0)
- Project inquiries index: 54.4
The regional and sector categories are calculated as a three-month moving average, whereas the index and inquiries are monthly numbers. +
Related Stories
Giants 400 | Aug 7, 2015
RECONSTRUCTION AEC GIANTS: Restorations breathe new life into valuable older buildings
AEC Giants discuss opportunities and complications associated with renovation, restoration, and adaptive reuse construction work.
BIM and Information Technology | Aug 6, 2015
After refueling its capital tank, WeWork acquires BIM consultant Case
The merger is expected to help standardize how WeWork designs and builds out office space.
Giants 400 | Aug 6, 2015
BIM GIANTS: Robotic reality capture, gaming systems, virtual reality—AEC Giants continue tech frenzy
Given their size, AEC Giants possess the resources and scale to research and test the bevy of software and hardware solutions on the market. Some have created internal innovation labs and fabrication shops to tinker with emerging technologies and create custom software tools. Others have formed R&D teams to test tech tools on the job site.
Giants 400 | Aug 6, 2015
GIANTS 300 REPORT: Top 115 Healthcare Architecture Firms
HDR, Stantec, and Perkins+Will top Building Design+Construction's 2015 ranking of the largest healthcare architecture and architecture/engineering firms in the U.S.
Giants 400 | Aug 6, 2015
HEALTHCARE AEC GIANTS: Hospital and medical office construction facing a slow but steady recovery
Construction of hospitals and medical offices is expected to shake off its lethargy in 2015 and recover modestly over the next several years, according to BD+C's 2015 Giants 300 report.
Codes and Standards | Aug 6, 2015
ConsensusDocs releases new CM agency contract standard agreement
For use when owner acts as the construction manager, hires a construction manager, or uses multiple prime contractors
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 135 Office Sector Architecture Firms
Gensler, HOK, and Perkins+Will top BD+C's ranking of the nation's largest office sector architecture and architecture/engineering firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 37 Engineering/Architecture Firms
Jacobs, AECOM, and Thornton Tomasetti head Building Design+Construction's 2015 ranking of the largest engineering/architecture firms in the United States.
Giants 400 | Aug 5, 2015
ENGINEERING GIANTS: Profits, revenue on the rise at U.S. engineering firms as economy sputters back to life
The vast majority of engineering firms are decidedly bullish on revenue growth for 2015, and profitability is nearing a six-year high, according to BD+C's 2015 Giants 300 report.