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
| Mar 24, 2014
Frank Lloyd Wright's S.C. Johnson Research Tower to open to the public—32 years after closing
The 14-story tower, one of only two Wright-designed high-rises to be built, has been off limits to the public since its construction in 1950.
Sponsored | | Mar 21, 2014
Kameleon Color paint creates color-changing, iridescent exterior for Exploration Tower at Port Canaveral
Linetec finishes Firestone’s UNA-CLAD panels, achieving a one-of-a-kind, dynamic appearance with the first use of Valspar’s new Kameleon Color
| Mar 21, 2014
Forget wood skyscrapers - Check out these stunning bamboo high-rise concepts [slideshow]
The Singapore Bamboo Skyscraper competition invited design teams to explore the possibilities of using bamboo as the dominant material in a high-rise project for the Singapore skyline.
| Mar 21, 2014
Pier Carlo Bontempi to receive Richard H. Driehaus Prize from Notre Dame
Established in 2003 by the Notre Dame School of Architecture, the $200,000 Richard H. Driehaus Prize is awarded to a living architect whose work embodies the highest ideals of traditional and classical architecture in contemporary society, and creates a positive cultural, environmental and artistic impact.
| Mar 21, 2014
How to get more referrals
If you’re having a hard time attracting new referrals, here are a few techniques for increasing the number of interactions with potential clients.
| Mar 20, 2014
Common EIFS failures, and how to prevent them
Poor workmanship, impact damage, building movement, and incompatible or unsound substrate are among the major culprits of EIFS problems.
| Mar 20, 2014
D.C. breaks ground on $2B mega waterfront development [slideshow]
When complete, the Wharf will feature approximately 3 million sf of new residential, office, hotel, retail, cultural, and public uses, including waterfront parks, promenades, piers, and docks.
| Mar 20, 2014
13 dazzling wood building designs [slideshow]
From bold structural glulam designs to striking textured wall and ceiling schemes, these award-winning building projects showcase the design possibilities using wood.
| Mar 20, 2014
Fluor defines the future 7D deliverable without losing sight of real results today
A fascinating client story by Fluor SVP Robert Prieto reminds us that sometimes it’s the simplest details that can bring about real results today—and we shouldn’t overlook them, even as we push to change the future state of project facilitation.
| Mar 19, 2014
Architecture Billings Index shows slight improvement
The American Institute of Architects (AIA) reported that the February ABI score was 50.7, up slightly from a mark of 50.4 in January.
