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
Market Data | Apr 29, 2022
U.S. economy contracts, investment in structures down, says ABC
The U.S. economy contracted at a 1.4% annualized rate during the first quarter of 2022.
Codes and Standards | Apr 28, 2022
Architecture firm Perkins&Will to deliver ‘carbon forecasts’ for clients
Global architecture firm Perkins&Will says it will issue its clients a “carbon forecast” for their projects.
Retail Centers | Apr 28, 2022
Cannabis dispensary Beyond-Hello debuts ‘glass-box’ design for Culver City facility
Los Angeles’ Culver City will open its first cannabis dispensary with Beyond/Hello.
Office Buildings | Apr 28, 2022
A 48-story office tower to rise over boomtown Austin
In downtown Austin, Texas, a planned 48-story office tower, The Republic, recently secured its first major tenant—allowing for the groundbreaking by midyear.
Sports and Recreational Facilities | Apr 27, 2022
New Univ. of Texas Moody Center houses men’s and women’s basketball, other events
The recently completed 530,000 sf University of Texas Moody Center is the new home for men’s and women’s basketball at the Austin campus.
Architects | Apr 26, 2022
Low-tech skills architects need to keep in a high-tech world
As architects continue to lean into learning and mastering the latest technologies, let us not forget the foundational, fundamental skills that are still expected by clients. RS&H National Design Director Philip Robbie explains.
Green | Apr 26, 2022
Climate justice is the design challenge of our lives
As climate change accelerates, poor nations and disadvantaged communities are suffering the first and worst impacts.
Multifamily Housing | Apr 26, 2022
Fitness centers for multifamily housing: Advice from 'Dr. Fitness,' Karl Smith
In this episode for HorizonTV, Cortland's Karl Smith shares best practices for designing, siting, and operating fitness centers in apartment communities.
Mixed-Use | Apr 26, 2022
Downtown Phoenix to get hundreds of residential and student housing units
In fast-growing Phoenix, Arizona, a transit-oriented development called Central Station will sit adjacent to Arizona State University’s Downtown Phoenix campus.
Hotel Facilities | Apr 25, 2022
U.S. hotel construction pipeline up 2%, with 5,090 projects in the works
The total U.S. hotel construction pipeline stands at 5,090 projects and 606,302 rooms at the end of the first quarter of 2022, up 2% by projects, but down 3% by rooms, according to the Q1 2022 Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE).
