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
Museums | Aug 29, 2024
Bjarke Ingels' Suzhou Museum of Contemporary Art conceived as village of 12 pavilions
The 60,000-sm Suzhou Museum of Contemporary Art in Suzhou, Jiangsu, China recently topped out. Designed by Bjarke Ingels Group (BIG), the museum is conceived as a village of 12 pavilions, offering a modern interpretation of the elements that have defined the city’s urbanism, architecture, and landscape for centuries.
Adaptive Reuse | Aug 28, 2024
Cities in Washington State will offer tax breaks for office-to-residential conversions
A law passed earlier this year by the Washington State Legislature allows developers to defer sales and use taxes if they convert existing structures, including office buildings, into affordable housing.
Industrial Facilities | Aug 28, 2024
UK-based tire company plans to build the first carbon-neutral tire factory in the U.S.
ENSO, a U.K.-based company that makes tires for electric vehicles, has announced plans to build the first carbon-neutral tire factory in the U.S. The $500 million ENSO technology campus will be powered entirely by renewable energy. The first-of-its-kind tire factory aims to be carbon neutral without purchased offsets, using carbon-neutral raw materials and building materials.
Architects | Aug 28, 2024
KTGY acquires residential high-rise specialist GDA Architects
KTGY, an award-winning design firm focused on architecture, interior design, branded environments and urban design, announced that it has acquired GDA Architects, a Dallas-based architectural firm specializing in high rise residential, hospitality and industrial design.
K-12 Schools | Aug 26, 2024
Windows in K-12 classrooms provide opportunities, not distractions
On a knee-jerk level, a window seems like a built-in distraction, guaranteed to promote wandering minds in any classroom or workspace. Yet, a steady stream of studies has found the opposite to be true.
Building Technology | Aug 23, 2024
Top-down construction: Streamlining the building process | BD+C
Learn why top-down construction is becoming popular again for urban projects and how it can benefit your construction process in this comprehensive blog.
Airports | Aug 22, 2024
Portland opens $2 billion mass timber expansion and renovation to its international airport
This month, the Portland International Airport (PDX) main terminal expansion opened to passengers. Designed by ZGF for the Port of Portland, the 1 million-sf project doubles the capacity of PDX and enables the airport to welcome 35 million passengers per year by 2045.
Adaptive Reuse | Aug 22, 2024
6 key fire and life safety considerations for office-to-residential conversions
Office-to-residential conversions may be fraught with fire and life safety challenges, from egress requirements to fire protection system gaps. Here are six important considerations to consider.
Resiliency | Aug 22, 2024
Austin area evacuation center will double as events venue
A new 45,000 sf FEMA-operated evacuation shelter in the Greater Austin metropolitan area will begin construction this fall. The center will be available to house people in the event of a disaster such as a major hurricane and double as an events venue when not needed for emergency shelter.
Cultural Facilities | Aug 21, 2024
Baltimore’s National Aquarium opens 10,000-sf floating wetland that mimics the harbor’s original tidal marsh habitat
The National Aquarium in Baltimore has opened the National Aquarium Harbor Wetland, a 10,000-sf floating wetland that mimics the Inner Harbor’s original Chesapeake Bay tidal marsh habitat. Located between Piers 3 and 4 on Baltimore’s Inner Harbor, the $14 million project features more than 32,000 native shrubs and marsh grasses.
