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
MFPRO+ News | Feb 15, 2024
Oregon, California, Maine among states enacting policies to spur construction of missing middle housing
Although the number of new apartment building units recently reached the highest point in nearly 50 years, construction of duplexes, triplexes, and other buildings of from two to nine units made up just 1% of new housing units built in 2022. A few states have recently enacted new laws to spur more construction of these missing middle housing options.
Green | Feb 15, 2024
FEMA issues guidance on funding for net zero buildings
The Federal Emergency Management Agency (FEMA) recently unveiled new guidance on additional assistance funding for net zero buildings. The funding is available for implementing net-zero energy projects with a tie to disaster recovery or mitigation.
Hospital Design Trends | Feb 14, 2024
Plans for a massive research hospital in Dallas anticipates need for child healthcare
Children’s Health and the UT Southwestern Medical Center have unveiled their plans for a new $5 billion pediatric health campus and research hospital on more than 33 acres within Dallas’ Southwestern Medical District.
Architects | Feb 13, 2024
Pierluca Maffey joins Carrier Johnson + Culture as new Firmwide Head of Design
Carrier Johnson + Culture (CJ+C) has hired Pierluca “Luca” Maffey, International Assoc. AIA, as the firm's new Firmwide Head of Design and Design Principal.
K-12 Schools | Feb 13, 2024
K-12 school design trends for 2024: health, wellness, net zero energy
K-12 school sector experts are seeing “healthiness” for schools expand beyond air quality or the ease of cleaning interior surfaces. In this post-Covid era, “healthy” and “wellness” are intersecting expectations that, for many school districts, encompass the physical and mental wellbeing of students and teachers, greater access to outdoor spaces for play and learning, and the school’s connection to its community as a hub and resource.
Office Buildings | Feb 13, 2024
Creating thoughtful tech workplace design
It’s important for office design to be inspiring, but there are some practical principles that can be incorporated into the design of real-world tech workplaces to ensure they convey an exciting, sophisticated allure that accommodates progressive thinking and inventiveness.
Airports | Feb 13, 2024
New airport terminal by KPF aims to slash curb-to-gate walking time for passengers
The new Terminal A at Zayed International Airport in the United Arab Emirates features an efficient X-shape design with an average curb-to-gate walking time of just 12 minutes. The airport terminal was designed by Kohn Pedersen Fox (KPF), with Arup and Naco as engineering leads.
Higher Education | Feb 9, 2024
Disability and architecture: ADA and universal design at college campuses
To help people with disabilities feel part of the campus community, higher education institutions and architects must strive to create settings that not only adhere to but also exceed ADA guidelines.
Codes | Feb 9, 2024
Illinois releases stretch energy code for building construction
Illinois is the latest jurisdiction to release a stretch energy code that provides standards for communities to mandate more efficient building construction. St. Louis, Mo., and a few states, including California, Colorado, and Massachusetts, currently have stretch codes in place.
Giants 400 | Feb 8, 2024
Top 10 Telecommunications Building Architecture Firms for 2023
Arcadis North America, CSArch, Interior Architects, and TETER top BD+C's ranking of the nation's largest telecommunications building architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.