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 22, 2022
For Gen Z, “enhanced communication” won’t cut it
As the fastest-growing generation, Generation Z, loosely defined as those born between the mid-1990s and early 2000s, has become a hot topic in conversations surrounding workplace design.
| Aug 22, 2022
Less bad is no longer good enough
As we enter the next phase of our fight against climate change, I am cautiously optimistic about our sustainable future and the design industry’s ability to affect what the American Institute of Architects (AIA) calls the biggest challenge of our generation.
Giants 400 | Aug 21, 2022
Top 110 Architecture/Engineering Firms for 2022
Stantec, HDR, HOK, and Skidmore, Owings & Merrill top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 20, 2022
Top 180 Architecture Firms for 2022
Gensler, Perkins and Will, HKS, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 19, 2022
2022 Giants 400 Report: Tracking the nation's largest architecture, engineering, and construction firms
Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories.
| Aug 19, 2022
Cuningham appoints Jacqueline Dompe as new Chief Executive Officer
Cuningham, a national design firm, is thrilled to announce the appointment of Jacqueline Dompe as the firm’s Chief Executive Officer (CEO).
| Aug 19, 2022
Future sea rise could expose 720,000 more people on East Coast to flooding
An analysis by NPR based on modeling from the National Hurricane Center for New York City, Washington, D.C., and Miami-Dade County found future sea rise could expose about 720,000 more people to damaging floods later this century.
| Aug 19, 2022
Manassas Museum renovated to reimagine a civic design & engage the community
Manassas, VA has recently added to its historic Manassas Museum.
Architects | Aug 18, 2022
GSA names Charles Hardy, AIA, CCM, Chief Architect at GSA Public Buildings Service
The U.S. General Services Administration (GSA) has named Charles (Chuck) Hardy as GSA’s next Chief Architect, effective August 14, 2022. A licensed architect, workplace strategist, and certified construction manager, Hardy’s career with GSA spans more than 31 years, beginning in GSA’s Great Lakes Region as an architect and project manager.
| Aug 18, 2022
U.S. Treasury moves to boost affordable housing
The Department of the Treasury recently announced new guidance to “increase the ability of state, local, and tribal governments to use American Rescue Plan (ARP) funds to boost the supply of affordable housing in their communities,” according to a news release.
