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
| Apr 29, 2014
Best of Canada: 12 projects nab nation's top architectural prize [slideshow]
The conversion of a Mies van der Rohe-designed gas station and North Vancouver City Hall are among the recently completed projects to win the 2014 Governor General's Medal in Architecture.
| Apr 29, 2014
USGBC launches real-time green building data dashboard
The online data visualization resource highlights green building data for each state and Washington, D.C.
| Apr 29, 2014
Big U in the Big Apple: New design to protect New York City's coastline
Bjarke Ingels' proposed design for the Rebuild by Design competition adapts a key design principle in ship building to improve urban flood protection.
| Apr 28, 2014
Welcome to the Hive: OVA designs wild shipping container hotel for competition
Hong Kong-based OVA envisions a shipping-container hotel, where rooms could be removed at will and designed by advertisers.
Smart Buildings | Apr 28, 2014
Cities Alive: Arup report examines latest trends in urban green spaces
From vertical farming to glowing trees (yes, glowing trees), Arup engineers imagine the future of green infrastructure in cities across the world.
| Apr 25, 2014
How the 'digital natives' will transform your Building Team
The newest generation to enter the workforce is like no other that has come before it. This cohort is the first to grow up with the Internet, mobile technologies, and an “always connected” lifestyle.
| Apr 25, 2014
A radiant barrier FAQ: Everything you wanted to know but were afraid to ask
There are many examples of materials developed for the space program making their way into everyday life and radiant barriers are just that. SPONSORED CONTENT
| Apr 25, 2014
6 winners selected for the Architectural League Prize
The Architectural League Prize, created in 1981, "recognizes exemplary and provocative work by young practitioners and provides a public forum for the exchange of their ideas," according to The Architectural League.
| Apr 24, 2014
Unbuilt and Famous: LEGO releases box set of Bjarke Ingels' LEGO museum
LEGO Architecture has created a box set that customers can use to build replicas of the LEGO Museum, which is not yet built in real life. The museum, designed by the Bjarke Ingels Group, will commemorate the history of LEGO.
| Apr 23, 2014
Ahead of the crowd: How architects can utilize crowdsourcing for project planning
Advanced methods of data collection, applied both prior to design and after opening, are bringing a new focus to the entire planning process.