Following three months of accelerating demand for design services, the Architecture Billings Index (ABI) reflected a somewhat slower pace of growth in October. 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 October ABI score was 51.6, down from a mark of 54.3 in September. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.5, up from the reading of 58.6 the previous month.
“There continues to be a lot of uncertainty surrounding the overall U.S. economic outlook and therefore in the demand for nonresidential facilities, which often translates into slower progress on new building projects,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “That is particularly true when you factor in the federal government shutdown that delayed many projects that were in the planning or design phases.”
Key October ABI highlights:
• Regional averages: West (55.9), South (54.4), Midwest (51.6), Northeast (49.7)
• Sector index breakdown: multi-family residential (57.0), commercial/industrial (53.7), mixed practice (53.2), institutional (50.2)
• Project inquiries index: 61.5
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.
About the AIA Architecture Billings Index
The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, 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
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| May 8, 2014
Sporting events in style: Infographic showcases novel stadiums of the world
UK precast concrete maker Banagher, which specializes in precast stadia solutions, has assembled a list of the world's top stadiums in terms of architectural and structural design.
| May 7, 2014
Design competition: $900,000 on the line in Las Vegas revitalization challenge
Las Vegas Mayor Carolyn Goodman wants your economic development ideas for remaking four areas within the city, including the Cashman Center and the Las Vegas Medical District.
| May 6, 2014
'Beyond' is artist's cinematic take on 2.5 years of development in the UAE
Seven-minute video offers a time-lapse trip through the built environments of Abu Dhabi and Dubai.
| May 6, 2014
'Ugliest building in New Jersey' finally getting facelift
After a decade of false starts and mishaps, the American Dream mall in the Meadowlands may finally get built.
| May 5, 2014
Toronto residential tower to feature drawer-like facade scheme
Some of the apartments in the new River City development will protrude from the building at different lengths, creating a drawer-like "push-pull" effect.
| May 5, 2014
Tragic wired glass injury makes headlines yet again
In the story, a high school student pushed open a hallway door glazed with wired glass. His arm not only broke the glass, but penetrated it, causing severe injuries. SPONSORED CONTENT
| May 3, 2014
Health system capital planning for the future: The benefits of master plan portfolio analysis and ambulatory market modeling
Money continues to be scarce, yet U.S. health systems need to invest and re-invest in their physical future. Healthcare facilities planning experts from CBRE Healthcare outline tools and strategies for identifying where to best allocate precious resources.
| May 3, 2014
4 easy steps to being a great project manager
Managing a team of people, especially creative people, is a task that not everyone is up for. Keeping your team on the same page while maintaining a schedule and budget that can keep your corporation happy will take confidence and bountiful people skills. Here are some tips for effectively managing a project. SPONSORED CONTENT
Sponsored | | May 3, 2014
Fire-rated glass floor system captures light in science and engineering infill
In implementing Northwestern University’s Engineering Life Sciences infill design, Flad Architects faced the challenge of ensuring adequate, balanced light given the adjacent, existing building wings. To allow for light penetration from the fifth floor to the ground floor, the design team desired a large, central atrium. One potential setback with drawing light through the atrium was meeting fire and life safety codes.
