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
Cultural Facilities | Nov 23, 2015
BIG plans for Pittsburgh: Bjarke Ingels’ Lower Hill District master plan evokes hilly topography
Paths will be carved to create a dialogue between Pittsburgh’s urbanscape and its hilly surroundings.
Architects | Nov 23, 2015
Dewberry acquires Houston’s Wilson Architectural Group
Now known as Dewberry | Wilson, the firm will have access to more MEP, technology design, site/civil, and land development capabilities.
Architects | Nov 19, 2015
Book helps prevent new architecture students from making common mistakes
Written by Iain Jackson, "The Architecture School Survival Guide" covers both broad designing ideas and specific architecture tips.
Architects | Nov 18, 2015
AIA: Demand for design services still up for the year
October's ABI score was 53.1, down slightly from the mark of 53.7 in September. This still reflects an increase in design services, as any score above 50 indicates an increase in billings.
Architects | Nov 16, 2015
Croatia's 'sea organ' lets the ocean make music
Visitors to the shores of the Adriatic Sea in Zadar, Croatia, can hear the sounds of the ocean in an entirely different way. There, when the waves hit the coast, they make music—literally.
Architects | Nov 16, 2015
Perkins Eastman, ForrestPerkins combine practices
The combined international firm will total almost 1,000 employees.
Architects | Nov 10, 2015
AIA releases nine new contract documents
Include six new forms for design-build projects.
Architects | Nov 9, 2015
Perkins+Will acquires London-based Portland Design Associates
The firms will work together to offer “future-proofing” insights to clients.
Architects | Nov 6, 2015
Hungary’s A4 Studio Wins World Architecture Community Award using ARCHICAD
Inspired by the suspended, community-designed shading structures seen on traditional Moroccan marketplaces, the Casablanca Market in Morocco allows traffic to flow through the arcade-like marketplace.
Healthcare Facilities | Nov 4, 2015
Hospital designers get the scoop on the role of innovation in healthcare
“Innovation” was the byword as 175 healthcare designers gathered in Chicago for the American College of Healthcare Architects/AIA Academy of Architecture for Health Summer Leadership Summit.
