Following consistently increasing demand for design services throughout most of 2013, the Architecture Billings Index (ABI) has posted its first consecutive months of contraction since May and June of 2012.
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 American Institute of Architects (AIA) reported the December ABI score was 48.5, down from a mark of 49.8 in November. This score reflects a decrease in design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 59.2, up from the reading of 57.8 the previous month.
“What we thought last month was an isolated dip now bears closer examination to see what is causing the slowdown in demand for architectural services,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “It is possible that some of this can be attributed to the anxiety in the marketplace caused by the shutdown of the federal government, but it will be important to see how business conditions fare through the first quarter of the new year when we no longer have end of the year issues to deal with.”
Key December ABI highlights:
• Regional averages: West (53.2), South (51.2), Midwest (47.0), Northeast (42.8)
• Sector index breakdown: multi-family residential (53.8), mixed practice 51.0), commercial / industrial (47.1), institutional (44.8)
• Project inquiries index: 59.2
Note: The regional and sector categories are calculated as a 3-month moving average, whereas the index 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 White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA website.
Related Stories
University Buildings | Aug 16, 2016
New images of Rice University’s Moody Center for the Arts revealed by Michael Maltzan Architecture
The arts center will foster creativity for making and presenting works across all disciplines
Designers | Aug 16, 2016
CCDI, Morphosis, and Diller Scofidio + Renfro are among ten finalists vying for Chinese Eco-Island design
The winning firm will design the master plan and central buildings for the man made Haikou Bay island.
Mixed-Use | Aug 16, 2016
Goettsch Partners completes mixed-use tower in R&F Yingkai Square
The 66-story building is now the 7th tallest completed building in Guangzhou.
| Aug 15, 2016
SPORTS FACILITY GIANTS: New and renovated college sports venues - designed to serve students and the community
Schools are renovating existing structures or building new sports facilities that can serve the student body and surrounding community.
| Aug 15, 2016
Top 50 Sports Facility Architecture Firms
Populous, HKS, and HOK top Building Design+Construction’s annual ranking of the nation’s largest sports facility sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 15, 2016
MILITARY GIANTS: Cross-laminated timber construction gets a salute from the Army
By privatizing the construction, renovation, operation, maintenance, and ownership of its hotels the Army expects to cut a 20-year timetable for repairs and replacement of its lodging down to eight years.
| Aug 15, 2016
Top 30 Military Architecture Firms
HDR, Clark Nexsen, and Guernsey top Building Design+Construction’s annual ranking of the nation’s largest military sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
SCIENCE + TECHNOLOGY GIANTS: Incubator model is reimagining research and lab design
Interdisciplinary interaction is a common theme among many new science and technology offices.
| Aug 12, 2016
Top 40 Science + Technology Architecture Firms
Perkins+Will, HDR, and HOK top Building Design+Construction’s annual ranking of the nation’s largest science + technology sector architecture and A/E firms, as reported in the 2016 Giants 300 Report.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
