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
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
University Buildings | Sep 27, 2023
Top 170 University Building Architecture Firms for 2023
Gensler, CannonDesign, Page Southerland Page, SmithGroup, and Ayers Saint Gross top the ranking of the nation's largest university sector architecture and architecture/engineering (AE) firms, as reported in Building Design+Construction's 2023 Giants 400 Report.
Affordable Housing | Sep 25, 2023
3 affordable housing projects that serve as social catalysts
Trish Donnally, Associate Principal, Perkins Eastman, shares insights from three transformative affordable housing projects.
Resiliency | Sep 25, 2023
National Institute of Building Sciences, Fannie Mae release roadmap for resilience
The National Institute of Building Sciences and Fannie Mae have released the Resilience Incentivization Roadmap 2.0. The document is intended to guide mitigation investment to prepare for and respond to natural disasters.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Giants 400 | Sep 20, 2023
Top 130 Hospitality Facility Architecture Firms for 2023
Gensler, WATG, HKS, and JCJ Architecture top BD+C's ranking of the nation's largest hospitality facilities sector architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all hospitality facilities work, including casinos, hotels, and resorts.
Adaptive Reuse | Sep 19, 2023
Transforming shopping malls into 21st century neighborhoods
As we reimagine the antiquated shopping mall, Marc Asnis, AICP, Associate, Perkins&Will, details four first steps to consider.
Giants 400 | Sep 18, 2023
Top 200 Office Building Architecture Firms for 2023
Gensler, Stantec, HOK, and Interior Architects top BD+C's ranking of the nation's largest office building sector architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all office building work, including core and shell projects and workplace/interior fitouts.
Resort Design | Sep 18, 2023
Luxury resort provides new housing community for its employees
The Wisteria community will feature a slew of exclusive amenities, including a market, pub, and fitness center, in addition to 33 new patio homes.
Life of an Architect Podcast | Sep 18, 2023
Life of an Architect Podcast Ep. 134: Management 101
It happens to most people eventually. Some get there quickly, while others take a bit longer. Transitioning into a management role is a natural evolution of skill development, but that doesn’t necessarily make it any easier. Chances are you’re ready for management, but in case you’ve questions, we think we have answers.