Riding a stretch of increasing levels of demand for thirteen out of the last fifteen months, the Architecture Billings Index (ABI) dropped in April for the second month this year.
The American Institute of Architects (AIA) reported the April ABI score was 48.8, down sharply from a mark of 51.7 in March. This score reflects a decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 60.1, up from a reading of 58.2 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.
“The fundamentals in the design and construction industry remain very healthy,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The fact that both inquires for new projects and new design contracts continued to accelerate at a healthy pace in April points to strong underlying demand for design activity. However, April would typically be a month where these projects would be in full swing, but a severe winter in many parts of the Northeast and Midwest has apparently delayed progress on projects.”
Key April ABI highlights:
- Regional averages: South (55.8), West (52.9) Midwest (49.9), Northeast (43.2)
- Sector index breakdown: institutional (51.8), mixed practice (51.8), multi-family residential (49.0), commercial / industrial (48.9)
- Project inquiries index: 60.1
- Design contracts index: 53.1
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts 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. More information on the ABI and the analysis of its relationship to construction activity can be found in the recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA web site.
Related Stories
Building Team | Jul 3, 2024
So you want to get published: What’s next?
In the AEC industry, securing media attention is no longer a niche endeavor but an essential component of a holistic marketing strategy.
Laboratories | Jul 3, 2024
New science, old buildings: Renovating for efficiency, flexibility, and connection
What does the research space of the future look like? And can it be housed in older buildings—or does it require new construction?
MFPRO+ New Projects | Jul 2, 2024
Miami residential condo tower provides a deeded office unit for every buyer
A new Miami residential condo office tower sweetens the deal for buyers by providing an individual, deeded and furnished office with each condo unit purchased. One Twenty Brickell Residences, a 34-story, 240-unit tower, also offers more than 60,000 sf of exclusive residential amenities.
Student Housing | Jul 1, 2024
Two-tower luxury senior living community features wellness and biophilic elements
A new, two-building, 27-story senior living community in Tysons, Va., emphasizes wellness and biophilic design elements. The Mather, a luxury community for adults aged 62 and older, is situated on a small site surrounded by high-rises.
Office Buildings | Jul 1, 2024
Mastering office layouts: 5 primary models for maximum efficiency and productivity
When laying out an office, there are many factors to consider. It’s important to maximize the space, but it’s equally important to make sure the design allows employees to work efficiently.
Smart Buildings | Jul 1, 2024
GSA to invest $80 million on smart building technologies at federal properties
The U.S. General Services Administration (GSA) will invest $80 million from the Inflation Reduction Act (IRA) into smart building technologies within 560 federal buildings. GSA intends to enhance operations through granular controls, expand available reporting with more advanced metering sources, and optimize the operator experience.
Sustainability | Jul 1, 2024
Amazon, JPMorgan Chase among companies collaborating with ILFI to advance carbon verification
Four companies (Amazon, JPMorgan Chase, JLL, and Prologis) are working with the International Living Future Institute to support development of new versions of Zero Carbon Certification.
K-12 Schools | Jul 1, 2024
New guidelines for securing schools and community spaces released by the Door Security and Safety Foundation
The Door Security and Safety Foundation (DSSF), in collaboration with Door and Hardware Institute (DHI), recently released of “Are Your Door Openings Secure?.” The document provides guidelines to equip school administrators, building management personnel, and community leaders with a clear roadmap to create a secure and safe environment.
Products and Materials | Jun 30, 2024
Top products from AIA 2024
This month, Building Design+Construction editors are bringing you the top products displayed at the 2024 AIA Conference on Architecture & Design. Nearly 550 building product manufacturers showcased their products—here are 17 that caught our eye.
University Buildings | Jun 28, 2024
The American University in Cairo launches a 270,000-sf expansion of its campus in New Cairo, Egypt
In New Cairo, Egypt, The American University in Cairo (AUC) has broken ground on a roughly 270,000-sf expansion of its campus. The project encompasses two new buildings intended to enhance the physical campus and support AUC’s mission to provide top-tier education and research.
