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
Architects | Nov 16, 2015
Perkins Eastman, ForrestPerkins combine practices
The combined international firm will total almost 1,000 employees.
Architects | Nov 10, 2015
AIA releases nine new contract documents
Include six new forms for design-build projects.
Architects | Nov 9, 2015
Perkins+Will acquires London-based Portland Design Associates
The firms will work together to offer “future-proofing” insights to clients.
Architects | Nov 6, 2015
Hungary’s A4 Studio Wins World Architecture Community Award using ARCHICAD
Inspired by the suspended, community-designed shading structures seen on traditional Moroccan marketplaces, the Casablanca Market in Morocco allows traffic to flow through the arcade-like marketplace.
Healthcare Facilities | Nov 4, 2015
Hospital designers get the scoop on the role of innovation in healthcare
“Innovation” was the byword as 175 healthcare designers gathered in Chicago for the American College of Healthcare Architects/AIA Academy of Architecture for Health Summer Leadership Summit.
Office Buildings | Nov 3, 2015
Emotional intelligence and design
In a world in which technology and its skills are constantly changing, good people skills are becoming more important, writes VOA's Angie Lee.
Architects | Nov 2, 2015
NCARB: Interactive tool helps architects prep for exam
The Transition Calculator for the Architect Registration Examination (ARE) will help licensure candidates transition from ARE 4.0 to ARE 5.0.
Architects | Nov 2, 2015
China Accord: Design firms sign pledge to tackle climate change
52 companies will collaborate to reduce carbon emissions.
BIM and Information Technology | Oct 29, 2015
MIT develops ‘river of 3D pixels’ to assemble objects
The Kinetic Blocks can manipulate objects into shapes without human interference.
Architects | Oct 27, 2015
Top 10 tile trends for 2016
Supersized tile and 3D walls are among the trending tile design themes seen at Cersaie, an exhibition of ceramic tile and bathroom furnishings held in Bologna, Italy in October.