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
| Jun 18, 2014
Largest Passive House structure in the U.S. to be built in Oregon
Orchards at Orenco, a 57-unit affordable housing complex in Hillsboro, Oregon, is the first of a three-phase, three-building complex.
| Jun 18, 2014
SOM's twisting tower wins design competition for Sweden's tallest skyscraper
The skyscraper, which will reach 230 meters and is named Polstjärnan, or "The Pole Star," is to be built in Gothenburg, Sweden.
| Jun 18, 2014
Study shows walkable urbanism has positive economic impact
Walkable communities have a higher GDP, greater wealth, and higher percentages of college grads, according to a new study by George Washington University.
| Jun 18, 2014
Ware Malcomb names Sorensen Engineering Regional Manager
New hire will oversee firm's civil engineering practice in Los Angeles, San Diego, and Irvine.
| Jun 18, 2014
JLG Architects hires 31 to keep up with 'shale gale' work
Construction boom fueled by 'shale gale' brings rapid growth to North Dakota firm.
| Jun 18, 2014
Arup uses 3D printing to fabricate one-of-a-kind structural steel components
The firm's research shows that 3D printing has the potential to reduce costs, cut waste, and slash the carbon footprint of the construction sector.
| Jun 18, 2014
Architecture Billings Index shows increase in design activity
The American Institute of Architects reported that the May ABI score was 52.6, up sharply from a mark of 49.6 in April. This score reflects an increase in design activity.
| Jun 17, 2014
Must see: If music were architecture in 27 illustrations
From Miles Davis to Björk to Manu Chao to Bach, Babina visualizes how these sounds will look like if they were visible in the form of architecture.
| Jun 17, 2014
Nation's largest Thai Buddhist temple opens near Boston
The $60 million facility built in honor of King Rama IX of Thailand is the largest Thai Buddhist temple outside of Thailand.
| Jun 17, 2014
U.S. Census report examines why Americans move
According to the U.S. Census Bureau, 35.9 million people moved between 2012 and 2013, meaning that 11.7% of the U.S. population moved in one year. The report seeks to examine why.
