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 | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Sports and Recreational Facilities | Jun 17, 2022
U. of Georgia football facility expansion provides three floors for high-performance training
A major expansion of the University of Georgia’s football training facility has been completed.
Building Team | Jun 16, 2022
Hybrid work expected to reduce office demand by 9%
Businesses are slowly but consistently transitioning to a permanent hybrid work environment, according to a senior economist at Econometric Advisors.
Building Team | Jun 16, 2022
USGBC announces more than 23 million square feet of LEED certified net zero space
Today, the U.S. Green Building Council announced nearly 100 net zero certifications earned under the LEED Zero program, representing more than 23 million square feet of space.
AEC Business Innovation | Jun 15, 2022
Cognitive health takes center stage in the AEC industry
Two prominent architecture firms are looking to build on the industry’s knowledge base on design’s impact on building occupant health and performance with new research efforts.
Market Data | Jun 15, 2022
ABC’s construction backlog rises in May; contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
Codes and Standards | Jun 15, 2022
Waived tariffs on solar panels expected to boost solar power
The Biden Administration recently waived tariffs on solar panels from four countries in a move advocates say will accelerate the clean energy transition and benefit national security.
Cultural Facilities | Jun 15, 2022
Gehry-designed Children’s Institute aims to foster community outreach in L.A.’s Watts neighborhood
The Children’s Institute (CII) in Los Angeles will open a 200,000-sf campus designed by Frank Gehry this summer.
Building Team | Jun 14, 2022
Thinking beyond the stadium: the future of district development
Traditional sports and entertainment venues are fading as teams and entertainment entities strive to move toward more diversified entertainment districts.
Codes and Standards | Jun 14, 2022
Hospitals’ fossil fuel use trending downward, but electricity use isn’t declining as much
The 2021 Hospital Energy and Water Benchmarking Survey by Grumman|Butkus Associates found that U.S. hospitals’ use of fossil fuels is declining since the inception of the annual survey 25 years ago, but electricity use is dipping more slowly.
