ABI turns positive after four monthly declines

On the heels of a period of weakness in design activity, the Architecture Billings Index (ABI) took a sudden upturn in August. 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 August ABI score was 51.4, following a very weak score of 45.1 in July. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.9, up sharply from a reading of 53.7 the previous month.

"Based on the poor economic conditions over the last several months, this turnaround in demand for design services is a surprise," said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. "Many firms are still struggling, and continue to report that clients are having difficulty getting financing for viable projects, but it's possible we've reached the bottom of the down cycle."

Key August ABI highlights:

Regional averages: Midwest (49.0), South (47.4), West (47.4), Northeast (46.5)
Sector index breakdown: mixed practice (50.9), institutional (48.5), commercial / industrial (46.0), multi-family residential (44.8)
Project inquiries index: 56.9 BD+C

Learning objectives After reading this article, you should be able to: Understand issues of thermal performance and energy efficiency in relation to window and door systems; describe optimal detailing of the window-wall interface and how it contributes to building performance, sustainability, and occupant well-being; understand how durability contributes to sustainable windows/doors; and list sustainable O&M requirements for window and door systems.

| Jul 21, 2011

Falling Architecture Billings Index reflects decrease in design demands

This months Architecture Billings Index (ABI), provided by the American Institute of Architects, is almost a full point lower than last month’s reported score. June’s reading of 47.2 was short of the required 50 to achieve billings increases, making July’s reading of 46.3 an unwelcome sign of market tidings.