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
| Sep 11, 2012
Ecosystem Management & Associates joins HDR
EM&A staff will do business as part of HDR Engineering and HDR Environmental, Operations and Construction.
| Sep 10, 2012
Specialty door types—plenty of functional variety
In the MasterFormat section 08 30 00, Specialty Doors and Frames, a number of door types are listed for special functions, access locations, sliding and folding hardware, and even pressure-resistant types.
| Sep 7, 2012
7 Do's and Don'ts for PV roof rack installation
As PVs grow in popularity, nearly half of all installations require roof rack systems. Our expert tells how to do the job right and protect your client’s roof.
| Sep 7, 2012
Net-zero energy pioneers on the el-hi frontier
Getting to net-zero is not easy, but the promise of eliminating energy bills and using state-of-the-art technology as a learning lab can make a compelling case to reach for net-zero.
| Sep 7, 2012
Healthcare architects get a preview of tomorrow’s medical landscape
The topic on everyone’s mind was how the Affordable Care Act would impact healthcare design and construction––and whether the law would even make it past the coming election cycle.
| Sep 7, 2012
Goettsch Partners designs new tower in Abu Dhabi
Al Hilal Bank’s 24-story flagship development provides contemporary office space.
| Sep 7, 2012
Suffolk awarded One Channel Center project in Boston
Firm to manage $125 million, 525,000-sf office building project.
| Sep 7, 2012
Duffy joins Thornton Tomasetti
At Hardesty & Hanover, Duffy partnered with Thornton Tomasetti on a number of projects.
| Sep 7, 2012
Lucile Packard Children’s Hospital breaks ground on expansion
Sustainability and nature at the heart of the new addition at the Stanford University Medical Center designed by Perkins+Will.
| Sep 6, 2012
Young Spirit of Nature Wood Architecture award to Tiina Antinoja
The award is given for a student work in which wood as a building material has a central role.
