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
Building Team | Oct 11, 2022
Associated Materials® Celebrates the Company’s Rich History, Which Began 75 Years Ago with the Founding of Alside
Since its inception in 1947, Alside® has been a leader in innovation and continues this very commitment to excellence – in people, products and services.
Standards | Oct 11, 2022
Peter Templeton named new USGBC and GBCI president and CEO
The U.S. Green Building Council (USGBC) and Green Business Certification Inc. (GBCI) appointed Peter Templeton as president and CEO.
Legislation | Oct 10, 2022
Chicago’s updated building energy code provides incentives for smart HVAC, water appliances
The Chicago City Council recently passed the 2022 Chicago Energy Transformation Code that is intended to align with the city’s goal of reducing carbon emissions by 62% from 2017 levels by 2040.
Contractors | Oct 7, 2022
Nonresidential construction spending down 0.4% in August, says ABC
National nonresidential construction spending was down 0.4% in August, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Multifamily Housing | Oct 7, 2022
Design for new Ft. Lauderdale mixed-use tower features sequence of stepped rounded volumes
The newly revealed design for 633 SE 3rd Ave., a 47-story, mixed-use tower in Ft. Lauderdale, features a sequence of stepped rounded volumes that ease the massing of the tower as it rises.
Giants 400 | Oct 6, 2022
Top 100 Medical Office Building Architecture + AE Firms for 2022
CannonDesign, Perkins Eastman, HGA, and E4H Environments for Health Architecture top the ranking of the nation's largest medical office building (MOB) architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 100 Outpatient Facility Architecture + AE Firms for 2022
Perkins and Will, HDR, CannonDesign, and Massa Multimedia Architecture top the ranking of the nation's largest outpatient facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 130 Hospital Facility Architecture + AE Firms for 2022
HDR, HKS, CannonDesign, and Stantec top the ranking of the nation's largest hospital facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Oct 6, 2022
Top 115 Healthcare Sector Contractors + CM Firms for 2022
Turner Construction, Brasfield & Gorrie, DPR Construction, and JE Dunn Construction top the ranking of the nation's largest healthcare sector contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.
Giants 400 | Oct 6, 2022
Top 90 Healthcare Sector Engineering + EA Firms for 2022
Jacobs, AECOM, WSP, and IMEG Corp. head the ranking of the nation's largest healthcare sector engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report. Note: This ranking factors all healthcare sector work, including hospitals, outpatient facilities, and medical office buildings.