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
Architects | Jun 2, 2021
Two new practice leaders appointed at FGM Architects
FGM Architects appoints Jan Behounek to lead Higher Education and Scott Nall to lead Federal Practice.
Building Technology | Jun 1, 2021
Orro Announces Google Nest Integration for the Orro Switch
Orro, creators of the professional-grade top-of-the-line Orro Smart Living System, today announced the integration of Nest products to Orro. As a certified partner in Google’s Device Access program, this latest Orro integration allows homeowners to have seamless control and access to Nest thermostats and doorbells from any Orro Switch throughout the home – creating a single unified smart home system with advanced, intelligent ambient control.
High-rise Construction | May 27, 2021
The anti-high rise: Seattle's The Net by NBBJ
In this exclusive video interview for HorizonTV, Ryan Mullenix, Design Partner with NBBJ, talks with BD+C's John Caulfield about a new building in Seattle called The Net that promotes wellness and connectivity.
Digital Twin | May 24, 2021
Digital twin’s value propositions for the built environment, explained
Ernst & Young’s white paper makes its cases for the technology’s myriad benefits.
Senior Living Design | May 19, 2021
Senior living design: Post-COVID trends and innovations
Two senior living design experts discuss the latest trends and innovations in the senior living building sector.
Multifamily Housing | May 18, 2021
Multifamily housing sector sees near record proposal activity in early 2021
The multifamily sector led all housing submarkets, and was third among all 58 submarkets tracked by PSMJ in the first quarter of 2021.
Wood | May 14, 2021
What's next for mass timber design?
An architect who has worked on some of the nation's largest and most significant mass timber construction projects shares his thoughts on the latest design trends and innovations in mass timber.
Architects | May 10, 2021
Industry icon Art Gensler dead at 85
He was credited with creating a model for the modern, growth-oriented professional services organization.
Healthcare Facilities | Apr 30, 2021
Registration and waiting: Weak points and an enduring strength
Changing how patients register and wait for appointments will enhance the healthcare industry’s ability to respond to crises.
University Buildings | Apr 29, 2021
The Weekly Show, April 29, 2021: COVID-19's impact on campus planning, and bird management strategies
This week on The Weekly show, BD+C Senior Editor John Caulfield interviews a duo of industry experts on 1) how campus planning has changed during the pandemic and 2) managing bird infestations on construction sites and completed buildings.