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
| Jan 6, 2014
Green Building Initiative names Jerry Yudelson as new President
The Green Building Initiative announced today that it has named Jerry Yudelson as its president to accelerate growth of the non-profit and further leverage its green building assessment tools, including the highly recognized Green Globes rating system.
| Jan 6, 2014
An interview with Jerry Yudelson, President, The Green Building Initiative
Green building consultant Jerry Yudelson has been named President of the Green Building Initiative and the Green Globes rating program. BD+C's Robert Cassidy talks with Yudelson about his appointment and the future of Green Globes.
| Jan 3, 2014
Norman Foster proposes elevated bikeways throughout London
Called SkyCycle, the plan calls for the construction of wide, car-free decks atop the city's existing railway corridors.
| Jan 3, 2014
World’s tallest vegetated façade to sprout in Sri Lanka [slideshow]
Set to open in late 2015, the 46-story Clearpoint Residences condo tower will feature planted terraces circling the entire structure.
| Dec 31, 2013
Top 10 blog posts from 2013
BD+C editors and our contributors posted hundreds of blogs in 2013. Here's a recap of the most popular topics. They include valuable lessons from one of the first BIM-related lawsuits and sage advice from AEC legend Arthur Gensler.
| Dec 31, 2013
BD+C's top 10 stories of 2013
The world's tallest twisting tower and the rise of augmented reality technology in construction were among the 10 most popular articles posted on Building Design+Construction's website, BDCnetwork.com.
| Dec 30, 2013
Calatrava facing legal action from his home town over crumbling cultural complex
Officials with the city of Valencia, Spain, are blaming Santiago Calatrava for the rapid deterioration of buildings within its City of Arts and Sciences complex.
| Dec 30, 2013
Survey: Number of licensed architects grows in 2012-13
A survey by NCARB shows that there are 105,847 registered architects in the U.S., up slightly from the organization's 2011-2012 survey.
| Dec 29, 2013
7 ways to make your firm more efficient
In a CEO.com post, Andrew Miller, president of ACM Consulting, shares the seven organizational efficiency strategies he encounters most frequently as he works with corporate executives to boost their performance.
| Dec 24, 2013
First Look: Calatrava's Sharq Crossing in Doha, Qatar [video]
The government of Qatar has released details of Sharq Crossing, a massive infrastructure project designed by Spanish architect Santiago Calatrava.