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
| Mar 19, 2012
HKS Selected for Baylor Medical Center at Waxahachie
Baylor Medical Center at Waxahachiewill incorporate advanced technology including telemedicine, digital imaging, remote patient monitoring, electronic medical records and computer patient records.
| Mar 19, 2012
Mixed-use project redefines Midtown District in Plantation, Fla.
Stiles Construction is building the residential complex, which is one of Broward County’s first multifamily rental communities designed to achieve LEED certification from the USGBC.
| Mar 16, 2012
Temporary fix to CityCenter's Harmon would cost $2 million, contractor says
By contrast, CityCenter half-owner and developer MGM Resorts International determined last year that the Harmon would collapse in a strong quake and can't be fixed in an economical way. It favors implosion at a cost of $30 million.
| Mar 16, 2012
Work on Oxnard, Calif. shopping center resumes after a three-year hiatus
Stalled since 2009, developers of the Collection at RiverPark decided to restart construction on the outdoor mall.
| Mar 16, 2012
Stego embarks on HPD Pilot Program
Vapor barrier manufacturer strives to provide better green choices to designers and builders.
| Mar 16, 2012
Marvin Windows and Doors accepting entries for fourth-annual myMarvin Architect’s Challenge
Architects in U.S. and abroad offered the chance to showcase their very best work.
| Mar 14, 2012
Hearing to decide fate of unfinished Harmon in Las Vegas under way
The testimony began with CityCenter consulting engineer Chukwuma Ekwueme methodically showing photo after photo of parts of the Harmon, where he and his team had chipped away the concrete pillars and beams to examine the steel reinforcing bars inside.
| Mar 14, 2012
Firestone names 2012 Master Contractor Award Winners
Annual award acknowledges industry’s top roofing professionals.
| Mar 14, 2012
Plans for San Francisco's tallest building revamped
The glassy white high-rise would be 60 stories and 1,070 feet tall with an entrance at First and Mission streets.