Washington, D.C. – March 23, 2011 – During the first two months of 2011 the Architecture Billings Index (ABI) is not exhibiting the strength of business conditions that were seen in the final quarter of 2010. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI score was 50.6, up slightly from a reading of 50.0 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.4, compared to a mark of 56.5 in December.
“Overall demand for design services seems to be treading water over the last two months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We’ve been preaching patience and cautious optimism for a full recovery because there continues to be a wide range of business conditions for architecture firms that are also influenced by firm size, practice specialties and regional location. We still expect the road to recovery to move at a slow, but steady pace.”
Key February ABI highlights:
Regional averages: Midwest (55.3), South (50.1), West (49.1), Northeast (46.4)
Sector index breakdown: commercial / industrial (55.0), mixed practice (51.3),
multi-family residential (49.7), institutional (48.9)
Project inquiries index: 56.4
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group <http://www.aia.org/practicing/economics> , 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 web site.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Building Team | Jul 11, 2016
Addressing client concerns about design-assist
Common concerns about DA include lack of familiarity, obtaining competitive pricing, and design liability.
Sponsored | Building Team | Jul 11, 2016
Construction Disruption at AECX: Technology, hackathons and the promise of change in LA
The lead up to AECX featured a discussion providing insight into the current state of the AEC technological revolution by exploring opportunities, challenges and choices AEC pros face.
Green | Jul 1, 2016
Perkins Eastman pledges to use EDGE green building system for five upcoming international projects
The firm will partner with the International Finance Corporation to promote sustainable building in emerging markets like India and China.
Healthcare Facilities | Jul 1, 2016
AIA releases summary of the 2016 Design and Health Research Consortium
Consortium members discussed how architects, designers, and health professionals can best apply design and health research in their communities.
Architects | Jun 30, 2016
The year's best small projects include a floating sauna, dental trailer, and smocked porch
AIA chose the 2016 recipients of the Small Project Awards. Every entry cost less than $1.5 million to build, with one as low as $900.
Architects | Jun 29, 2016
AIA: Healthy demand for all building types signaled in Architecture Billings Index
Recent client interest could signal resurgence for institutional market. May's ABI score was the highest mark in nearly a year.
Architects | Jun 28, 2016
5 easy ways architects can increase their profits
Whitehorn Financial Managing Principal Steve Whitehorn offers effective ways to recoup lost revenue, including a few strategies that capitalize on recent changes to the federal tax code.
AEC Tech | Jun 27, 2016
If ‘only the paranoid survive,’ what does it take to thrive?
“Sooner or later, something fundamental in your business world will change.” The late Andrew Grove (1936-2016), Co-founder of tech giant Intel Corp., lived by these words.
Architects | Jun 15, 2016
Design Thinking makes its way into Yale School of Management
The school will introduce Design Observer co-founders Jessica Helfand and Michael Bierut as faculty.
Retail Centers | Jun 14, 2016
Zaha Hadid and Gensler among finalists for Sunset Strip billboard design competition
The concepts are curvy, sleek, and multidimensional, and feature sharp digital displays.