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
| May 18, 2011
New center provides home to medical specialties
Construction has begun on the 150,000-sf Medical Arts Pavilion at the University Medical Center in Princeton, N.J.
| May 18, 2011
Improvements add to Detroit convention center’s appeal
Interior and exterior renovations and updates will make the Detroit Cobo Center more appealing to conventioneers. A new 40,000-sf ballroom will take advantage of the center’s riverfront location, with views of the river and downtown.
| May 18, 2011
One of Delaware’s largest high schools seeks LEED for Schools designation
The $82 million, 280,000-sf Dover (Del.) High School will have capacity for 1,800 students and feature a 900-seat theater, a 2,500-seat gymnasium, and a 5,000-seat football stadium.
| May 18, 2011
Carnegie Hall vaults into the 21st century with a $200 million renovation
Historic Carnegie Hall in New York City is in the midst of a major $200 million renovation that will bring the building up to contemporary standards, increase educational and backstage space, and target LEED Silver.
| May 17, 2011
Redesigning, redefining the grocery shopping experience
The traditional 40,000- to 60,000-sf grocery store is disappearing and much of the change is happening in the city. Urban infill sites and mixed-use projects offer grocers a rare opportunity to repackage themselves into smaller, more efficient, and more convenient retail outlets. And the AEC community will have a hand in developing how these facilities will look and operate.
| May 17, 2011
Architecture billings index fell in April, hurt by tight financing for projects
The architecture billings index, a leading indicator of U.S. construction activity, fell in April, hurt by tight financing for projects. The architecture billings index fell 2.9 points last month to 47.6, a level that indicates declining demand for architecture services, according to the American Institute of Architects.
| May 17, 2011
Sustainability tops the syllabus at net-zero energy school in Texas
Texas-based firm Corgan designed the 152,200-sf Lady Bird Johnson Middle School in Irving, Texas, with the goal of creating the largest net-zero educational facility in the nation, and the first in the state. The facility is expected to use 50% less energy than a standard school.
| May 17, 2011
Gilbane partners with Steel Orca on ultra-green data center
Gilbane, along with Crabtree, Rohrbaugh & Associates, has been selected to partner with Steel Orca to design and build a 300,000-sf data center in Bucks County, Pa., that will be powered entirely through renewable energy sources--gas, solar, fuel cells, wind and geo-thermal. Completion is scheduled for 2013.