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
| Jan 13, 2015
Steven Holl unveils design for $450 million redevelopment of Houston's Museum of Fine Arts
Holl designed the campus’ north side to be a pedestrian-centered cultural hub on a lively landscape with ample underground parking.
| Jan 12, 2015
23 projects win AIA's highest architecture award
Bjarke Ingels' Danish Maritime Museum and William Rawn's Cambridge Public Library are among the winning projects.
| Jan 9, 2015
Santiago Calatrava talks with BBC about St. Nicholas Church on Ground Zero
Calatrava reveals that he wanted to retain the “tiny home” feel of the original church building that was destroyed with the twin towers on 9/11.
| Jan 9, 2015
Nonresidential construction hiring surges in December 2014
The U.S. construction industry added 48,000 jobs in December, including 22,800 jobs in nonresidential construction, according to the Bureau of Labor Statistics preliminary estimate released Jan. 9.
| Jan 9, 2015
10 surprising lessons Perkins+Will has learned about workplace projects
P+W's Janice Barnes shares some of most unexpected lessons from her firm's work on office design projects, including the importance of post-occupancy evaluations and having a cohesive transition strategy for workers.
| Jan 9, 2015
Technology and media tenants, not financial companies, fill up One World Trade Center
The financial sector has almost no presence in the new tower, with creative and media companies, such as magazine publisher Conde Nast, dominating the vast majority of leased space.
| Jan 8, 2015
Microsoft shutters classic clipart gallery: Reaction from a graphic designer
Microsoft shut down its tried-and-true clipart gallery, ridding the world not only of a trope of graphic design, but a nostalgic piece of digital design history, writes HDR's Dylan Coonrad.
| Jan 8, 2015
The future of alternative work spaces: open-access markets, co-working, and in-between spaces
During the past five years, people have begun to actively seek out third places not just to get a day’s work done, but to develop businesses of a new kind and establish themselves as part of a real-time conversation of diverse entrepreneurs, writes Gensler's Shawn Gehle.
Smart Buildings | Jan 7, 2015
NIBS report: Small commercial buildings offer huge energy efficiency retrofit opportunities
The report identifies several barriers to investment in such retrofits, such as the costs and complexity associated with relatively small loan sizes, and issues many small-building owners have in understanding and trusting predicted retrofit outcomes.
| Jan 7, 2015
University of Chicago releases proposed sites for Obama library bid
There are two proposed sites for the plan, both owned by the Chicago Park District in Chicago’s South Side, near the university’s campus in Hyde Park, according to the Chicago Sun-Times.
