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 12, 2012
Building independence: New take on female power
Memoir explores historic engineering project, women's empowerment era.
| Jan 12, 2012
3M takes part in Better Buildings Challenge
As a partner in the challenge, 3M has committed to reduce energy use by 25% in 78 of its plants, encompassing nearly 38 million-sf of building space.
| Jan 11, 2012
DOE announces guide for 50% more energy efficient retail buildings
The 50% AEDG series provides a practical approach for designers and builders of retail stores, and other major commercial building types, to achieve 50% energy savings compared to the building energy code used in many parts of the nation.
| Jan 11, 2012
Mortenson starts construction of Rim Rock Wind Project
Renewable energy contractor to build 189-megawatt wind project in Sunburst, Mont.
| Jan 9, 2012
FGM Architects acquires SRBL Architects
The firm reviewed gaps in each of the markets and identified a need in the municipal market for stronger police facility design expertise as well as additional project management and design expertise for this market.
| Jan 9, 2012
Shawmut appoints Les Hiscoe COO and EVP
In his new role, Hiscoe will focus on developing the Company’s field services divisions; national business in retail, hospitality, gaming, and sports venues; Tri-State business in academic and healthcare; sales and marketing; and human resources
| Jan 9, 2012
Thornton Tomasetti acquires green consulting firm Fore Solutions
International engineering firm launches new building sustainability practice.
| Jan 9, 2012
METALCON International 2012 announced
METALCON 2012 is scheduled for Oct. 9-11 at the Donald E Stephens Convention Center, Hall A, Rosemont, Ill.
| Jan 9, 2012
Lutron appoints Pessina president
In his 35-year career with Lutron, Pessina has acquired broad experience in the engineering, quality assurance and manufacturing areas.
| Jan 9, 2012
A new journey for KSS Architects co-founder
Kehrt's legacy of projects include Rutgers University's Biomedical Engineering Building, the renovation and expansion of Cornell University School of Hotel Administration, the recent new campus center at The Richard Stockton College of New Jersey and Princeton Township's Municipal Complex.