After its first negative score in 10 months, the Architecture Billings Index (ABI) showed a nominal increase in design activity in February, and has been positive ten out of the past twelve months.
The American Institute of Architects (AIA) reported the February ABI score was 50.4, up slightly from a mark of 49.9 in January. This score reflects a minor increase in design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 56.6, down from a reading of 58.7 the previous month.
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.
“The health of the institutional market has been the key factor for positive business conditions for the design and construction industry in recent months, and it is encouraging to see that sector remain on solid footing,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, we’re seeing some slowing in the other major construction sectors. Design billings for residential projects had its first negative month in over three years, and commercial design billings have seen only modest growth in recent years.”
Key February ABI highlights:
- Regional averages: South (52.5), Midwest (50.2), Northeast (48.0), West (46.7)
- Sector index breakdown: institutional (52.2), commercial / industrial (51.4), multi-family residential (48.9), mixed practice (45.3)
- Project inquiries index: 56.6
- Design contracts index: 50.0
The regional and sector categories are calculated as a 3-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, 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.
Related Stories
Multifamily Housing | Apr 18, 2017
Three multifamily, three specialized housing projects among 14 recipients of the AIA’s 2017 Housing Awards
2017 marks the 17th year the AIA has rewarded projects and architects with the Housing Awards.
Projects | Apr 17, 2017
BD+C's 2017 Design Innovation Report
Façades that would make Dr. Seuss smile, living walls, and exterior wall space that doubles as gallery space are all represented in this year's BD+C Design Innovation Report.
Healthcare Facilities | Apr 13, 2017
The rise of human performance facilities
A new medical facility in Chicago focuses on sustaining its customers’ human performance.
Laboratories | Apr 13, 2017
How to design transformative scientific spaces? Put people first
While most labs are designed to achieve that basic functionality, a transformational lab environment prioritizes a science organization’s most valuable assets: its people.
Hotel Facilities | Apr 12, 2017
Hotels embrace place
Today’s hospitality environments emphasize unique, localized experiences to attract and engage guests.
Green | Apr 11, 2017
Passivhaus for high-rises? Research demonstrates viability of the stringent standards for tall residential buildings
A new study conducted by FXFOWLE shows that Building Teams can meet stringent Passivhaus performance standards with minimal impact to first cost and aesthetics.
Curtain Wall | Apr 11, 2017
Masters of geometry
Three firms that specialize in façades that curve, twist, and turn see themselves as artisans of the unthinkable.
Office Buildings | Apr 10, 2017
Innovation lab makes developing eye care solutions a collaborative affair
The Shop East innovation lab presents 13,500 sf of workspace across two floors with an emphasis on collaboration.
Architects | Apr 10, 2017
New Bjarke Ingels documentary gives a peek behind the curtain
The movie takes a slightly darker tone than previous projects chronicling the starchitect’s rise to prominence.
