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
Airports | Sep 30, 2015
Takeoff! 5 ways high-flyin' airports are designing for rapid growth
Nimble designs, and technology that humanizes the passenger experience, are letting airports concentrate on providing service and generating revenue.
Contractors | Sep 30, 2015
FMI: Construction in place on track for sustained growth through 2016
FMI’s latest report singles out manufacturing, lodging, and office sectors as the drivers of nonresidential building activity and investment.
![What went wrong? Diagnosing building envelope distress [AIA course]](/sites/default/files/styles/list_big/public/Screen%20shot%202015-09-29%20at%209.46.33%20AM.png?itok=QDq8CQJv "What went wrong? Diagnosing building envelope distress [AIA course]")
Reconstruction & Renovation | Sep 29, 2015
What went wrong? Diagnosing building envelope distress [AIA course]
With so many diverse components contributing to building envelope assemblies, it can be challenging to determine which of these myriad elements was the likely cause of a failure.
Architects | Sep 24, 2015
Supertall buildings vie for dominance along Chicago’s skyline
The latest proposals pit designs by Rafael Viñoly, Jeanne Gang, and Helmut Jahn.
Architects | Sep 24, 2015
From Gehry to the High Line: What makes a project a game-changer?
Each year, there are a handful of projects that significantly advance the AEC industry or a particular building type. Send us your game-changing projects for BD+C’s January 2016 special report.
Cultural Facilities | Sep 24, 2015
Bakpak Architects' 'pottery courtyard' concept in Poland incorporates local heritage
The multifunctional building proposed for Rzeszow, Poland, looks like it was handcrafted on a potter’s wheel.
Modular Building | Sep 23, 2015
SOM and DOE unveil 3D-printed, off-the-grid building
The Additive Manufacturing Integrated Energy (AMIE) building features a high-performance shell with a photovoltaic roof and built-in natural gas generator.
Airports | Sep 23, 2015
JFK Airport's dormant TWA terminal will be reborn as a hotel
After 15 years of disuse, the Googie architecture-inspired TWA Flight Center at New York’s John F. Kennedy International Airport will be transformed into a hotel. Gizmodo reports that the city’s Port Authority chose a renovation proposal from Jet Blue this week.
Architects | Sep 23, 2015
Architecture billings dip in August, but no 'cause for concern' says AIA economist
The American Institute of Architects reported the August ABI score was 49.1, down from a mark of 54.7 in July. This score reflects a slight decrease in design services.
Sports and Recreational Facilities | Sep 21, 2015
Tokyo Olympic Stadium saga ends for Zaha Hadid
After resubmitting a bid, the firm will not design the main venue for the 2020 Olympics after all.
