After consecutive months of contracting demand for design services, there was a modest uptick in the Architecture Billings Index (ABI), according to the American Institute of Architects.
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. AIA reported the January ABI score was 50.4, up from a mark of 48.5 in December. This score reflects an increase in design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 58.5, down a bit from the reading of 59.2 the previous month.
“There is enough optimism in the marketplace that business conditions should return to steady growth as the year progresses,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The suspension of the debt ceiling should ease some anxiety around projects for the federal government, at least for the time being. However, private sector spending should lead the construction upturn this year, which will depend more on employment growth and continued improvement in the overall economy.
Key January ABI highlights:
• Regional averages: South (53.5),West (51.1), Midwest (46.5), Northeast (43.6)
• Sector index breakdown: multi-family residential (51.8), commercial / industrial (50.9), mixed practice (48.4), institutional (46.5)
• Project inquiries index: 58.5
* The regional and sector categories are calculated as a 3-month moving average, whereas the national index and inquiries are monthly numbers.
** Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.
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. These monthly results are also seasonally adjusted to allow for comparison to prior months. The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. More information on the ABI and the analysis of its relationship to construction activity can be found in the White Paper Architecture Billings as a Leading Indicator of Construction: Analysis of the Relationship Between a Billings Index and Construction Spending on the AIA web site.
About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being. Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
| Dec 16, 2014
Architect Eli Attia sues Google over tall building technology
Attia and tech company Max Sound Corp. have brought a lawsuit against Google because of Flux, a Google X-developed startup launched in 2014. Flux creates software to design environmentally-friendly buildings in a cost-effective way.
| Dec 15, 2014
SHoP Architects plans to turn NY's Seaport District into pedestrianized, mixed-use area
The scheme includes a proposed 500-foot luxury residential tower that would jut out into the harbor, extending the Manhattan grid out into the waterfront.
| Dec 15, 2014
Frank Lloyd Wright School of Architecture launches fundraising campaign for independent incorporation
The Frank Lloyd Wright Foundation announced today that it approved a possible path toward independent incorporation of the Frank Lloyd Wright School of Architecture by raising $2 million before the end of 2015.
| Dec 15, 2014
Studio Gang tapped for American Museum of Natural History expansion
Chicago-based Studio Gang Architects has been commissioned to design the $325 million Gilder Center for Science, Education and Innovation at the American Museum of Natural History in New York.
| Dec 12, 2014
Dunkin’ Donuts launches certification for green restaurant buildings
The company aims to build 100 new DD Green-certified restaurants by the end of 2016.
| Dec 12, 2014
COBE's striking 'concrete finned' scheme wins competition for Adidas' flagship building in Germany
Danish firm COBE has been announced the winner in a contest to design a new Adidas flagship building in Herzogenaurach, Germany. It beat out 29 other teams, including REX and Zaha Hadid.
| Dec 12, 2014
SOM names winner of One World Trade Center photo contest
Gerry Padden's winning photo offers a striking juxtaposition of the Brooklyn Bridge with the sparkling One World Trade Center tower.
| Dec 11, 2014
2015 Architecture Firm Award goes to Ehrlich Architects
The AIA Architecture Firm Award, given annually, is the highest honor the AIA bestows on an architecture firm and recognizes a practice that consistently has produced distinguished architecture for at least 10 years.
| Dec 11, 2014
Moshe Safdie awarded 2015 AIA Gold Medal
The AIA Gold Medal, voted on annually, honors an individual whose significant body of work has had a lasting influence on the theory and practice of architecture.
| Dec 10, 2014
International Olympic Committee releases first images of new HQ in Switzerland
Designed by 3XN, the new headquarters is located within a park on the shores of Lake Geneva and adjacent to historic Château de Vidy, which has been the iconic home of the IOC.