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 19, 2011
What are the 15 most-watched construction and engineering stocks?
According to Motley Fool, a multimedia financial services company, the most-watched construction and engineering stock is Fluor (NYSE: FLR), which ranks #1 on BD+C’s Giants 300 engineering list with $1.994 billion in revenue in 2009. Check out the 14 other most-watched A/E stocks.
| Apr 19, 2011
AIA announces top 10 green Projects for 2011
The American Institute of Architects Committee on the Environment announced its Top 10 Green Projects for 2011. Among the winners: Cherokee Studios in Los Angeles, the Department of Energy's National Renewable Energy Laboratory in Golden, Colo., and the Vancouver Convention Centre West in Vancouver, British Columbia.
| Apr 18, 2011
Greening and Upgrading Today’s Vertical Transport Systems
Earn 1.0 AIA/CES HSW/SD learning units by studying this article and passing the online exam.
| Apr 14, 2011
U.S. embassies on a mission to green the world's buildings
The U.S. is putting greater emphasis on greening its worldwide portfolio of embassies. The U.S. State Department-affiliated League of Green Embassies already has 70 U.S. embassies undergoing efforts to reduce their environmental impact, and the organization plans to increase that number to more than 100 by the end of the year.
| Apr 14, 2011
How AEC Professionals Choose Windows and Doors
Window and door systems need to perform. Respondents to our annual window and door survey overwhelmingly reported that performance, weather resistance, durability, and quality were key reasons a particular window or door was specified.
| Apr 14, 2011
USGBC debuts LEED for Healthcare
The U.S. Green Building Council (USGBC) introduces its latest green building rating system, LEED for Healthcare. The rating system guides the design and construction of both new buildings and major renovations of existing buildings, and can be applied to inpatient, outpatient and licensed long-term care facilities, medical offices, assisted living facilities and medical education and research centers.
| Apr 13, 2011
National Roofing Contractors Association revises R-value of polyisocyanurate (ISO) insulation
NRCA has updated their R-value recommendation for polyisocyanurate roof insulation with the publication of the 2011 The NRCA Roofing Manual: Membrane Roof Systems.
| Apr 13, 2011
Professor Edward Glaeser, PhD, on how cities are mankind’s greatest invention
Edward Glaeser, PhD, the Fred and Eleanor Glimp Professor of Economics at Harvard University and director of the Taubman Center for State and Local Government and the Rappaport Institute for Greater Boston, as well as the author of Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Healthier, and Happier, on how cities are mankind’s greatest invention.
| Apr 13, 2011
Southern Illinois park pavilion earns LEED Platinum
Erin’s Pavilion, a welcome and visitors center at the 80-acre Edwin Watts Southwind Park in Springfield, Ill., earned LEED Platinum. The new 16,000-sf facility, a joint project between local firm Walton and Associates Architects and the sustainability consulting firm Vertegy, based in St. Louis, serves as a community center and special needs education center, and is named for Erin Elzea, who struggled with disabilities during her life.
