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
| Oct 9, 2014
More recession-postponed design projects are being resurrected, says AIA
About three quarters of the estimated 700 firms that serve as panelists on AIA’s Architectural Billings Index (ABI) had delayed or canceled major design projects in response to recessionary pressures. Nearly one-third of those firms now say they have since restarted stalled projects.
| Oct 9, 2014
Steven Holl's 'intersecting spheres' scheme for Taipei necropolis gets green light
The schematic design has been approved for the 50 000-sm Arrival Hall and Oceanic Pavilion for the Taiwan ChinPaoSan Necropolis.
| Oct 9, 2014
Beyond the bench: Meet the modern laboratory facility
Like office workers escaping from the perceived confines of cubicles, today’s scientists have been freed from the trappings of the typical lab bench, writes Perkins+Will's Bill Harris.
| Oct 8, 2014
New tools for community feedback and action
Too often, members of a community are put into a reactive position, asked for their input only when a major project is proposed. But examples of proactive civic engagement are beginning to emerge, write James Miner and Jessie Bauters.
| Oct 8, 2014
Massive ‘healthcare village’ in Nevada touted as world’s largest healthcare project
The $1.2 billion Union Village project is expected to create 12,000 permanent jobs when completed by 2024.
| Oct 8, 2014
First look: Woods Bagot unveils plans for new Christchurch Convention Center
The locally-inspired building is meant to serve as a symbol of the city's recovery from the earthquake of 2011.
| Oct 8, 2014
Denver transit project wins design-build Project of the Year honor
The Denver Union Station Transit Improvement Project is among 25 projects honored by the Design Build Institute of America for excellence in design-build project delivery.
| Oct 7, 2014
Analysis: Student loans will cost housing industry $83 billion in 2014
More than 410,000 single- and multifamily home sales will be lost in 2014 due to student loan debt, according to analysis by John Burns Real Estate Consulting.
Sponsored | | Oct 7, 2014
Boost efficiency with advanced framing
As architects continue to search for ways to improve building efficiencies, more and more are turning to advanced framing methods, particularly for multifamily and light commercial projects.
| Oct 7, 2014
Economic gains are rallying rents in Raleigh, N.C.
The greater Raleigh, N.C., market appears to be getting back on its feet again, which is good news for rental property owners.
