After six months of steadily increasing demand for design services, the Architecture Billings Index (ABI) paused in November. The American Institute of Architects reported the November ABI score was 49.8, down from a mark of 51.6 in October.
This score reflects a slight decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.8, down from the reading of 61.5 the previous 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.
“Architecture firms continue to report widely varying views of business conditions across the country. This slight dip is likely just a minor, and hopefully temporary, lull in the progress of current design projects,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “But there is a continued uneasiness in the marketplace as businesses attempt to determine the future direction of demand for commercial, industrial, and institutional buildings.”
Key November ABI highlights:
- Regional averages: South (52.0), Midwest (51.6), West (50.2), Northeast (47.5)
- Sector index breakdown: multi-family residential (55.2), mixed practice (53.1), commercial / industrial (48.6), institutional (47.7)
- Project inquiries index: 57.8
- 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
Resiliency | Oct 13, 2017
Resiliency takes center stage in new projects around the country
Projects like these, where resilience is central to their design and construction, are becoming more commonplace.
Architects | Oct 11, 2017
Architects to policymakers: Buildings are infrastructure, too
Left out of this ongoing national debate over infrastructure are the nation’s other public buildings: the libraries, community centers, courthouses, community college buildings, affordable housing developments, and justice facilities.
Giants 400 | Oct 11, 2017
Top 25 data center architecture firms
Jacobs, Corgan, and Gensler top BD+C’s ranking of the nation’s largest data center sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Oct 9, 2017
6 new products for the multifamily construction market
Bamboo wall panels, an adaptable prep sink, and a two-tiered bike parking system are among the product innovations geared for multifamily buildings.
AEC Tech | Oct 6, 2017
How professional bias can sabotage industry transformation
Professional bias can take the form of change-resistant thinking that can keep transformational or innovative ambitions at bay. Tech consultant Nate Miller presents three kinds of bias that often emerge when a professional is confronted with new technology.
Giants 400 | Oct 6, 2017
Top 90 K-12 architecture firms
Stantec, DLR Group, and PBK top BD+C’s ranking of the nation’s largest K-12 sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 5, 2017
On wings of gold: Alternative financing schemes are propelling the high-flyin’ air terminals sector
The $4 billion renovation of New York City’s LaGuardia Airport is the first major U.S. aviation project delivered using a public-private partnership (P3) model.
Giants 400 | Oct 4, 2017
Top 40 airport construction firms
Hensel Phelps, Turner Construction Co., and Skanska USA top BD+C’s ranking of the nation’s largest airport sector contractors and construction management firms, as reported in the 2017 Giants 300 Report.
Giants 400 | Oct 3, 2017
Top 30 airport architecture firms
Jacobs, Corgan, and Gensler top BD+C’s ranking of the nation’s largest airport sector architecture and AE firms, as reported in the 2017 Giants 300 Report.
Multifamily Housing | Sep 27, 2017
Pickleball, anyone?
Two-and-a-half million Americans are playing the game with the funny name.