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
| Nov 10, 2011
Suffolk Construction awarded MBTA transit facility and streetscape project
The 21,000-sf project will feature construction of a cable-stayed pedestrian bridge over Ocean Avenue, an elevated plaza deck above Wonderland MBTA Station, a central plaza, and an at-grade pedestrian crossing over Revere Beach Boulevard
| Nov 10, 2011
Thornton Tomasetti’s Joseph and Choi to co-chair the Council on Tall Buildings and Urban Habitat’s Outrigger Design Working Group
Design guide will describe in detail the application of outriggers within the lateral load resisting systems of tall buildings, effects on building behavior and recommendations for design.
| Nov 9, 2011
Lincoln Center Pavilion wins national architecture and engineering award
The project team members include owner Lincoln Center for the Performing Arts, New York; design architect and interior designer of the restaurant, Diller Scofidio + Renfro, New York; executive architect, FXFOWLE, New York; and architect and interior designer of the film center, Rockwell Group, New York; structural engineer Arup (AISC Member), New York; and general contractor Turner Construction Company (AISC Member), New York.
| Nov 9, 2011
Sika Sarnafil Roof Recycling Program recognized by Society of Plastics Engineers
Program leads the industry in recovering and recycling roofing membrane into new roofing products.
| Nov 9, 2011
American Standard Brands joins the Hospitality Sustainable Purchasing Consortium
American Standard will collaborate with other organizations to build an industry-wide sustainability performance index.
| Nov 8, 2011
Transforming a landmark coastal resort
Originally built in 1973, the building had received several alterations over the years but the progressive deterioration caused by the harsh salt water environment had never been addressed.
| Nov 8, 2011
WEB EXCLUSIVE: Moisture-related failures in agglomerated floor tiles
Agglomerated tiles offer an appealing appearance similar to natural stone at a lower cost. To achieve successful installations, manufacturers should provide design data for moisture-related dimensional changes, specifiers should require in-situ moisture testing similar to those used for other flooring materials, and the industry should develop standards for fabrication and installation of agglomerated tiles.
| Nov 8, 2011
$11 million business incubator Florida Innovation Hub at the University of Florida completed by Charles Perry Partners, Inc.
The facility houses the UF Office of Technology Licensing, UF Tech Connect, other entities, and more than 30 startup technology tenants.
| Nov 8, 2011
Designer joins Holabird & Root
Clifton has been awarded numerous awards throughout her career, including two AIA Chicago Design Excellence Awards.