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 | Dec 6, 2018
Payette honored with 2019 AIA Architecture Firm Award
The award recognizes a firm that has consistently produced distinguished architecture for at least 10 years.
Biophilic Design | Nov 19, 2018
Biophilic design: What is it? Why it matters? And how do we use it?
As we continue to move toward the city and spend more time indoors, our day-to-day interaction with quality nature is shrinking. One contemporary concept to reverse this effect is biophilic design, a strategic approach to tap into—and harness—nature in the built environment.
Architects | Nov 6, 2018
Kohn Pedersen Fox opens three new offices
Following exciting current work, new commissions, and upcoming opportunities, global architecture firm embraces the future with new outposts.
Architects | Oct 2, 2018
Gensler, in latest report, highlights where resilient design could make the greatest impact on the built environment
The firm showcases its own recent projects as demonstrations for what can work in six areas.
Architects | Sep 24, 2018
Assembly (and rigorous planning) required: Managing the pros and cons of modular construction
While offering efficiency and flexibility, modular construction requires extensive planning and collaboration to avoid potential challenges.
Architects | Sep 19, 2018
Back it up: Parking lot trends
There are two shifts that we are seeing in parking lot planning and design – and these shifts are rooted in parking’s place at the intersection of environment, transportation, and market behavior.
Architects | Sep 14, 2018
We’ve entered the golden age of brain science. What does it mean for AEC firms?
New research from the SMPS Foundation explores the known principles and most recent research surrounding the human brain and behavioral science. The goal: to discover connections between the science and the AEC business.
Architects | Sep 6, 2018
S/L/A/M Collaborative completes merger with L.A.-based firm
The healthcare sector is one of Frank Webb Architects’ strengths.
Giants 400 | Sep 6, 2018
What's happening at 89 design firms
The latest developments at 89 of the nation's largest architecture and architecture/engineering (AE) firms.
Architects | Sep 6, 2018
Little details, big questions: Occupancy planning 101 for healthcare facilities
Transitioning into a new hospital is no easy feat and daily tasks can have a huge impact.
