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
| Aug 21, 2014
Strategies for providing great customer service
Customers are inherently inefficient and inconvenient to do business with, writes Customer Service Consultant Micah Solomon, in a recent Forbes post. That’s why he believes great customer service depends on understanding this. SPONSORED CONTENT
Sponsored | | Aug 21, 2014
Defining the measure of success when implementing new technologies
Sasha Reed and Chad Dorgan, McCarthy Building Cos.’s Vice President of Quality and Sustainability, discuss the keys to managing innovation within a large construction firm. SPONSORED CONTENT
| Aug 21, 2014
RTKL's parent company Arcadis acquires Callison
The acquisition of Callison, known predominantly for its leadership in retail and mixed-use design, builds on Arcadis’ strong global design and architecture position, currently provided by RTKL.
| Aug 21, 2014
Must See: Detroit's Beaux-Arts parking garage
An opulent Renaissance Revival building in downtown Detroit is being used as a parking garage.
| Aug 20, 2014
WELL Building: The next step in green sports construction
The WELL Building Standard, a new protocol that focuses on human wellness within the built environment, is a particularly good fit for sports facilities, write Skanska's Tom Tingle and Beth Heider.
| Aug 20, 2014
Seattle's King Street Station thoughtfully restored [2014 Reconstruction Awards]
After years of neglect and botched renovations, King Street Station sparkles once again.
| Aug 20, 2014
Tour an office with no assigned workstations [slideshow]
The New York office of the Gerson Lehrman Group recently redesigned its office without personal desks or cubicles. The company gave each of its 250 employees a locker, a laptop, and told to work anywhere they wanted, according to Business Insider.
| Aug 20, 2014
Architecture Billings Index reaches highest mark since 2007
The American Institute of Architects reported the July ABI score was 55.8, up noticeably from a mark of 53.5 in June.
| Aug 19, 2014
Goettsch Partners unveils design for mega mixed-use development in Shenzhen [slideshow]
The overall design concept is of a complex of textured buildings that would differentiate from the surrounding blue-glass buildings of Shenzhen.
| Aug 19, 2014
HOK to acquire 360 Architecture
Expected to be finalized by the end of October, the acquisition of 360 Architecture will provide immediate benefits to both firms’ clients worldwide as HOK re-enters the sports and entertainment market.
