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 11, 2010
Skanska Promotes Richard Kennedy to COO for NY/NJ Metro Area
Skanska USA Building Inc., headquartered in Parsippany, N.J., has announced that Richard Kennedy was promoted to Chief Operating Officer from his previous role as Senior Vice President – General Counsel. Kennedy’s promotion marks the latest addition to Skanska’s national leadership team.
| Aug 11, 2010
The New Yorker's David Owen: Why Manhattan is America's greenest community
David Owen is a staff writer at The New Yorker and the author of 14 books, most recently Green Metropolis: Why Living Smaller, Living Closer, and Driving Less Are the Keys to Sustainability, in which he argues that Manhattan is the greenest community in America. He graduated from Harvard and lives in Washington, Conn., where he chairs the town planning commission.
| Aug 11, 2010
Brown Craig Turner opens senior living studio
Baltimore-based architecture and design firm Brown Craig Turner has significantly expanded its housing design capabilities and expertise with the launch of its new senior living studio.
| Aug 11, 2010
George H. Miller, FAIA, inaugurated as 2010 AIA President
George H. Miller, FAIA, partner at Pei Cobb Freed & Partners LLP, was inaugurated as the 86th president of the American Institute of Architects (AIA) during ceremonies held on December 4th.
| Aug 11, 2010
Burwell Architects, Ziegler Cooper Architects announce merger
Ziegler Cooper Architects is pleased to announce that Burwell Architects has merged into the Corporate Interior Studio of Ziegler Cooper Architects. We believe the new relationship will enhance and expand the services we can provide to our clients.
| Aug 11, 2010
BE&K Building Group, Turner, BRPH awarded Boeing 787 Dreamliner assembly plant project
A joint venture of the BE&K Building Group and Turner Construction (BE&K | Turner), with design partner BRPH, has been awarded the design-build contract for design and construction of The Boeing Company’s new 787 Dreamliner final assembly plant in North Charleston, South Carolina.
| Aug 11, 2010
Sustainable Buildings as Teaching Tools: 4 Strategies for Integrating Buildings into Experiential Learning
4 Strategies for Integrating Buildings into Experiential Learning
| Aug 11, 2010
Using physical mockups to identify curtain wall design flaws
Part two of a five-part series on diagnosing and avoiding cladding, glazing, and roofing failures from building forensics expert IBA Consultants.
