On the heels of six out of seven months of increasing levels of demand for design services, the Architecture Billings Index (ABI) fell just below the positive mark. 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 the August ABI score was 49.7, down from the mark of 51.5 in the previous month. This score reflects a decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.8, up sharply from a reading of 57.5 the previous month.
Despite the decrease in the demand for architectural services, this is only the second month this year that has experienced a decline. Currently, it doesn’t appear as if there is any reason to worry about a broader downturn in the design and construction industry, according to AIA Chief Economist, Kermit Baker, Hon. AIA, PhD.
Key August ABI highlights:
- Regional averages: South (55.2), Midwest (52.8), West (49.0), Northeast (44.9)
- Sector index breakdown: mixed practice (51.8), multi-family residential (50.9), commercial / industrial (50.8), institutional (50.7)
- Project inquiries index: 61.8
- Design contracts index: 52.7
Related Stories
Market Data | Oct 2, 2020
AEC industry is weathering COVID-19 better than most
Nearly one-third of firms have had layoffs, more than 90% have experienced project delays.
Market Data | Oct 2, 2020
6 must reads for the AEC industry today: October 2, 2020
BIG imagines how to live on the moon and smart buildings stand on good data.
Market Data | Oct 1, 2020
Two-thirds of metros shed construction jobs from August 2019 to August 2020
Houston-The Woodlands-Sugar Land and Brockton-Bridgewater-Easton, Mass. have worst 12-month losses, while Indianapolis-Carmel-Anderson, Ind. and Niles-Benton Harbor, Mich. top job gainers.
Market Data | Oct 1, 2020
6 must reads for the AEC industry today: October 1, 2020
David Adjaye to receive 2021 Royal Gold Medal for Architecture and SOM reimagines the former Cook County Hospital.
Market Data | Sep 30, 2020
6 must reads for the AEC industry today: September 30, 2020
Heatherwick Studio designs The Cove for San Francisco and Washington, D.C.'s first modular apartment building.
Market Data | Sep 29, 2020
6 must reads for the AEC industry today: September 29, 2020
Renovation to Providence's downtown library is completed and Amazon to build 1,500 new last-mile warehouses.
Market Data | Sep 25, 2020
5 must reads for the AEC industry today: September 25, 2020
AIA releases latest 2030 Commitment results and news delivery robots could generate trillions for U.S. economy.
Market Data | Sep 24, 2020
6 must reads for the AEC industry today: September 24, 2020
SOM's new waterfront neighborhood and a portable restroom designed for mobility.
Market Data | Sep 23, 2020
Architectural billings in August still show little sign of improvement
The pace of decline during August remained at about the same level as in July and June.
Market Data | Sep 23, 2020
7 must reads for the AEC industry today: September 23, 2020
The new Theodore Presidential Library and the AIA/HUD's Secretary's Awards honor affordable, accessible housing.
