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
| Mar 28, 2012
40 Under 40, the Class of 2012
Chosen from 223 applicants, these 40 young AEC professionals represent the Class of 2012 in Building Design+Construction’s “40 UNDER 40” competition.
| Mar 28, 2012
Milestone reached for LEED-certified buildings?
Total number of major global green buildings now stands at 12,000.
| Mar 28, 2012
Holden Cancer Center opens at University of Iowa Hospitals and Clinics
The new cancer clinic provides a significant increase in patient space from the prior facility, which was located in an adjacent building.
| Mar 28, 2012
Meridian Design Build Begins work on 38 acre redevelopment project
The project includes construction of a new 150,585-sf cross dock facility that will include full service truck maintenance and repair bays, a truck wash, and approximately 20,000-sf of corporate office space.
| Mar 28, 2012
Tsoi/Kobis & Associates developing master plan for UT Southwestern Medical Center
Firm will spearhead strategies for transforming existing in-patient hospital into state-of-the-art ambulatory care facility.
| Mar 28, 2012
Ideas and input drive stories in online community, noraXchange
Community designed to help building and design professionals address challenges they face in their jobs.
| Mar 27, 2012
Bank of America Plaza becomes Atlanta's priciest repo
Repo will help reset market prices for real estate, and the eventual new owner will likely set rental rates at a new or near the bottom and improve the facilities to lure tenants.
| Mar 27, 2012
Skanska hires aviation construction expert Bob Postma
Postma will manage Skanska’s nationwide in-house team of airport construction experts who lead the industry in building and renovating airport facilities and their essential features.
| Mar 27, 2012
Precast concrete used for affordable, sustainable housing in New York
Largest affordable housing development in the nation will provide housing for close to 500,000 people.
| Mar 27, 2012
Groundbreaking held for Valencia College West Campus Building 10 in Orlando
Project led by design-build team of SchenkelShultz Architecture and McCree General Contractors, both of Orlando.
