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
| May 23, 2012
New hospitals invest in data centers to manage growth in patient info
Silver Cross became one of the first hospitals to install patient tracking software so families know where a patient is at all times. New communication equipment supports wireless voice and data networks throughout the hospital, providing access to patients and their families while freeing clinicians to use phones and computers where needed instead of based on location.
| May 23, 2012
Summit Design+Build selected as GC for Chicago restaurant
Little Goat will truly be a multifunctional space. Construction plans include stripping the 10,000 sq. ft. building down to the bare structure everywhere, the installation of a new custom elevator and adding square footage at the second floor with an addition.
| May 22, 2012
Batson-Cook names Partin VP of Business Development
Partin joins general contractor from Georgia Hospital Association.
| May 22, 2012
Casaccio Architects and GYA Architects join to form Casaccio Yu Architects
Architects Lee A. Casaccio, AIA, LEED AP, and George Yu, AIA, share leadership of the new firm.
| May 22, 2012
O’Connell Robertson acquires Mitchell Design Consultancy
Mary Ann A. Mitchell, AIA, IIDA, MDC principal and founder, joins O’Connell Robertson as part of the acquisition.
| May 21, 2012
$61,000 awarded to students in Cleveland’s ACE Mentor Program
Mayor Frank G. Jackson gives keynote address at scholarship event for 80 Cleveland Metropolitan School District students involved in the ACE Mentor Program, which provides guidance and assistance for students interested in careers in the integrated construction industry.
| May 21, 2012
Wayne, Pa.'s Radnor Middle School wins national green award
Radnor Middle School among the most sustainable schools in the U.S.
| May 21, 2012
Winchester High School receives NuRoof system
Metal Roof Consultants attended a school board meeting and presented a sloped metal retrofit roof as an alternative to tearing off the existing roof and replacing it with another flat roof.
| May 17, 2012
EMerge Alliance forms new Campus Microgrid Technical Standards Committee
Intel leading the charge to connect multiple DC microgrids throughout commercial buildings; others invited to join effort.
| May 16, 2012
AIA issues guide to IGCC
Getting the IgCC adopted in all 50 states and in jurisdictions across the country is the primary mission of the ICC, which published the code in March.