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
| Jun 26, 2014
Glazing offers peace-of-mind for hurricane season
SPONSORED CONTENT As hurricane season kicks into high gear, it reinforces the importance of balancing the aesthetic and daylight enhancements of glazing with the safety requirements to protect people and structures from hurricane-force winds.
| Jun 26, 2014
Plans for Britain’s newest landmark brings in international cooperation
Designers of the London Eye will team up with companies from France, the Netherlands and the United States to construct i360 Brighton, the U.K.'s newest observation tower.
| Jun 25, 2014
The best tall buildings of 2014
Four high-rise buildings from multiple continents have been selected as the best of their region. The best worldwide tall building will be announced November 6.
| Jun 25, 2014
AIA Foundation launches Regional Resilient Design Studio
The Studio is the first to be launched as part of the AIA Foundation’s National Resilience Program, which plans to open a total of five Regional Resilience Design Studios nationwide in collaboration with Architecture for Humanity, and Public Architecture.
| Jun 25, 2014
Frank Lloyd Wright’s Spring House, Cincinnati’s Union Terminal among 11 Most Endangered Historic Places for 2014
The National Trust for Historic Preservation released its annual list of 11 Most Endangered Historical Sites in the United States for 2014.
| Jun 25, 2014
Best of Britain: 56 buildings make it to the RIBA Stirling Prize's longlist
The longlist for the 2014 prize includes Foster + Partners' Marseille and London's now-famous Shard, designed by Renzo Piano.
| Jun 25, 2014
Green Building Initiative Announces New Appointments to Board
Glumac consulting engineer CEO Steve Straus and Plum Creek director of real estate Doug Cole join GBI's board of directors.
| Jun 25, 2014
Taking a page from Lean manufacturing for improved design review processes
SPONSORED CONTENT As more building project teams look for ways to collaborate better, technology continues to provide solutions. Yet, as I learned from the experience of one of my customers, choosing the wrong technology can have an underwhelming effect, causing a team to simply swap out old challenges for new ones.
| Jun 24, 2014
From Babylon to Sydney: The evolution of the modern workspace [infographic]
This infographic, made by Sunica de Klerk and originally posted by ArchDaily, shows the evolution of the office from 2400 B.C. to the present day.
| Jun 24, 2014
Mayor Rahm Emanuel announces plans for a Chicago Architecture Biennial
Chicago's mayor Rahm Emanuel announces plan to hold the Chicago Architecture Biennial in late 2015, intended to rival Venice's Biennale.