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
| Aug 7, 2014
Office Sector Giants: ‘Flex’ reigns supreme in hot office construction market [2014 BD+C Giants 300 Report]
The adage “doing more with less” has become a byword for many businesses since the Great Recession, and clients are trying to maximize every precious inch, according to BD+C's 2014 Giants 300 Report.
| Aug 6, 2014
BIG reinvents the zoo with its 'Zootopia' natural habitat concept [slideshow]
Bjarke Ingels’ firm is looking to improve the 1960s-designed Givskund Zoo in Denmark by giving the animals a freer range to roam.
| Aug 6, 2014
The Dead Prize: A new award to recognize poorly designed buildings
If the film industry has its Razzie awards, architecture will have its Dead Prize, created by Architecture for Humanity co-founder Cameron Sinclair to recognize projects that actively harm the planet.
| Aug 6, 2014
25 projects win awards for design-build excellence
The 2014 Design-Build Project/Team Awards showcase design-build best practices and celebrate the achievements of owners and design-build teams in nine categories across the spectrum of horizontal and vertical construction.
| Aug 6, 2014
Multifamily Sector Giants: Younger consumers, Sunbelt renaissance energize multifamily housing [2014 Giants 300 Report]
Multifamily housing construction is expected to remain relatively strong throughout 2014. Starts picked up in 2013, with completions due to catch up this year, finally approaching pre-recession levels, according to BD+C's 2014 Giants 300 Report.
| Aug 5, 2014
Risk scanning: A new tool for managing healthcare facilities
Using well-known risk analytics applied to pre-existing facility data, risk scanning can provide a much richer view of facility condition more consistent with actual management decision making.
| Aug 5, 2014
Shigeru Ban-designed Aspen Art Museum will open doors to public this week
After 18 month of planning and construction, the museum will open its new Shigeru Ban-designed facility to the public on August 9.
| Aug 5, 2014
Will driverless cars kill the parking structure?
A report from Deloitte highlighted how driverless cars could dramatically alter car ownership in the future, pushing the pendulum from ownership to rentals and ride sharing.
| Aug 5, 2014
K-12 School Sector Giants: Pent-up demand finally produces movement in schools market [2014 Giants 300 Report]
After a long period of anemic performance, with growth mostly driven by renovations and additions, the K-12 sector is showing renewed interest in new construction, according to BD+C's 2014 Giants 300 Report.
| Aug 4, 2014
Jean Nouvel commissioned to design Islam Museum next to WTC
El-Gamal's plans has been dubbed controversial by many industry professionals.