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
Office Buildings | Aug 10, 2023
Bjarke Ingels Group and Skanska to deliver 1550 on the Green, one of the most sustainable buildings in Texas
In downtown Houston, Skanska USA’s 1550 on the Green, a 28-story, 375,000-sf office tower, aims to be one of Texas’ most sustainable buildings. The $225 million project has deployed various sustainable building materials, such as less carbon-intensive cement, to target 60% reduced embodied carbon.
Healthcare Facilities | Aug 10, 2023
The present and future of crisis mental health design
BWBR principal Melanie Baumhover sat down with the firm’s behavioral and mental health designers to talk about how intentional design can play a role in combatting the crisis.
Architects | Aug 10, 2023
Hoffmann Architects + Engineers awards first Diversity Advancement Scholarship to Reeja Shrestha of Howard University
Now in its inaugural year, the Hoffmann Scholarship was established in collaboration with the Connecticut Architecture Foundation (CAF) to support students from underrepresented racial or ethnic groups who are seeking degrees in architecture or engineering.
Senior Living Design | Aug 7, 2023
Putting 9 senior living market trends into perspective
Brad Perkins, FAIA, a veteran of more than four decades in the planning and design of senior living communities, looks at where the market is heading in the immediate future.
Higher Education | Aug 7, 2023
Building a better academic workplace
Gensler's David Craig and Melany Park show how agile, efficient workplaces bring university faculty and staff closer together while supporting individual needs.
University Buildings | Aug 7, 2023
Eight-story Vancouver Community College building dedicated to clean energy, electric vehicle education
The Centre for Clean Energy and Automotive Innovation, to be designed by Stantec, will house classrooms, labs, a library and learning center, an Indigenous gathering space, administrative offices, and multiple collaborative learning spaces.
Green | Aug 7, 2023
Rooftop photovoltaic panels credited with propelling solar energy output to record high
Solar provided a record-high 7.3% of U.S. electrical generation in May, “driven in large part by growth in ‘estimated’ small-scale (e.g., rooftop) solar PV whose output increased by 25.6% and accounted for nearly a third (31.9%) of total solar production,” according to a report by the U.S. Energy Information Administration.
Resiliency | Aug 7, 2023
Creative ways cities are seeking to beat urban heat gain
As temperatures in many areas hit record highs this summer, cities around the world are turning to creative solutions to cope with the heat. Here are several creative ways cities are seeking to beat urban heat gain.
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.
