After starting out the year on a positive note, there was another minor increase in the Architecture Billings Index (ABI) last month.
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 that the February ABI score was 50.7, up slightly from a mark of 50.4 in January.
This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.8, down from the reading of 58.5 the previous month.
“The unusually severe weather conditions in many parts of the country have obviously held back both design and construction activity,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The March and April readings will likely be a better indication of the underlying health of the design and construction markets. We are hearing reports of projects that had been previously shelved for extended periods of time coming back online as the economy improves.”
Key February ABI highlights:
- Regional averages: South (52.8),West (50.5), Northeast (48.3), Midwest (47.6)
- Sector index breakdown: multi-family residential (52.5), commercial / industrial (51.9), institutional (49.6), mixed practice (46.6)
- Project inquiries index: 56.8
The regional and sector categories are calculated as a 3-month moving average, whereas the national index and inquiries are monthly numbers.
Related Stories
Government Buildings | Aug 7, 2023
Nearly $1 billion earmarked for energy efficiency upgrades to federal buildings
The U.S. General Services Administration (GSA) recently announced plans to use $975 million in Inflation Reduction Act funding for energy efficiency and clean energy upgrades to federal buildings across the country. The investment will impact about 40 million sf, or about 20% of GSA’s federal buildings portfolio.
MFPRO+ New Projects | Aug 4, 2023
Nashville gets 'first-of-its-kind' residential tower
Global architecture firm Goettsch Partners announces the completion of Alcove, a new 356-unit residential tower in Nashville, Tenn., developed by Giarratana LLC.
Industrial Facilities | Aug 3, 2023
The state of battery manufacturing in the era of EV
One of the most significant changes seen in today’s battery plant is the full manufacturing process—from raw materials to the fully operational battery.
Government Buildings | Aug 2, 2023
A historic courthouse in Charlotte is updated and expanded by Robert A.M. Stern Architects
Robert A.M. Stern Architects’ design retains the original building’s look and presence.
Hotel Facilities | Aug 2, 2023
Top 5 markets for hotel construction
According to the United States Construction Pipeline Trend Report by Lodging Econometrics (LE) for Q2 2023, the five markets with the largest hotel construction pipelines are Dallas with a record-high 184 projects/21,501 rooms, Atlanta with 141 projects/17,993 rooms, Phoenix with 119 projects/16,107 rooms, Nashville with 116 projects/15,346 rooms, and Los Angeles with 112 projects/17,797 rooms.
Architects | Aug 1, 2023
Ware Malcomb announces hire of Jason Golub as Regional Director
In this role, Golub is responsible for the overall leadership and continued growth of the office.
Market Data | Aug 1, 2023
Nonresidential construction spending increases slightly in June
National nonresidential construction spending increased 0.1% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. Spending is up 18% over the past 12 months. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.07 trillion in June.
Healthcare Facilities | Aug 1, 2023
Top 10 healthcare design projects for 2023
The HKS-designed Allegheny Health Network Wexford (Pa.) Hospital and Flad Architects' Sarasota Memorial Hospital - Venice (Fla.) highlight 10 projects to win 2023 Healthcare Design Awards from the American Institute of Architects Academy of Architecture for Health.
Office Buildings | Aug 1, 2023
Creating a nurturing environment: The value of a mother’s room in the workplace
Since becoming an architect, Rebecca Martin of Design Collaborative has drawn a mother’s room into numerous projects. But it wasn't until she became a mom that she fully appreciated their importance in the workspace.
Digital Twin | Jul 31, 2023
Creating the foundation for a Digital Twin
Aligning the BIM model with the owner’s asset management system is the crucial first step in creating a Digital Twin. By following these guidelines, organizations can harness the power of Digital Twins to optimize facility management, maintenance planning, and decision-making throughout the building’s lifecycle.