Washington, D.C. - March 24, 2010 - Following a drop of nearly three points, the Architecture Billings Index (ABI) nudged up almost two points in February. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the February ABI rating was 44.8, up from a reading of 42.5 in January. This score indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 52.0.
"We continue to hear that funding dedicated for construction projects in the stimulus package has not yet been awarded, resulting in a bottleneck of potential projects that could help jumpstart the economy," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "That, coupled with a persistently rigid credit market for private sector projects, is a key reason why the design and construction industry continue to suffer at near historic levels in terms of job losses."
Key February ABI highlights:
Regional averages: Midwest (49.4), Northeast (44.1), West (43.6), South (40.7)
Sector index breakdown: multi-family residential (47.3), institutional (44.2), mixed practice (43.3), commercial / industrial (43.2)
Project inquiries index: 52.0
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly "Work-on-the-Boards" survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey's inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey 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. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. The regional and sector data is formulated using a three-month moving average.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org
Related Stories
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Events Facilities | Feb 22, 2021
Weiss/Manfredi designs $250 million expansion for Longwood Gardens
The project will transform 17 acres of the core conservatory area.
Healthcare Facilities | Feb 18, 2021
The Weekly show, Feb 18, 2021: What patients want from healthcare facilities, and Post-COVID retail trends
This week on The Weekly show, BD+C editors speak with AEC industry leaders from JLL and Landini Associates about what patients want from healthcare facilities, based on JLL's recent survey of 4,015 patients, and making online sales work for a retail sector recovery.
Multifamily Housing | Feb 10, 2021
The Weekly show, Feb 11, 2021: Advances in fire protection engineering, and installing EV ports in multifamily housing
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Bozzuto Management Company and Goldman Copeland about advice on installing EV ports in multifamily housing, and advances in fire protection engineering.
Architects | Feb 5, 2021
Heartwell named CEO at CallisonRTKL; Thompson appointed firm's first COO
Kim Heartwell named CEO at CallisonRTKL; Harold Thompson appointed COO.
Healthcare Facilities | Feb 5, 2021
Healthcare design in a post-COVID world
COVID-19’s spread exposed cracks in the healthcare sector, but also opportunities in this sector for AEC firms.
Building Owners | Feb 4, 2021
The Weekly show, Feb 4, 2021: The rise of healthy buildings and human performance
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Brookfield Properties, NBBJ, and UL about healthy buildings certification and improving human performance through research-based design.
AEC Tech | Jan 28, 2021
The Weekly show, Jan 28, 2021: Generative design tools for feasibility studies, and landscape design trends in the built environment
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Studio-MLA and TestFit about landscape design trends in the built environment, and how AEC teams and real estate developers can improve real estate feasibility studies with real-time generative design.
Multifamily Housing | Jan 27, 2021
2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions
In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.
Modular Building | Jan 26, 2021
Offsite manufacturing startup iBUILT positions itself to reduce commercial developers’ risks
iBUILT plans to double its production capacity this year, and usher in more technology and automation to the delivery process.