For the second consecutive month, the Architecture Billings Index (ABI) indicated a modest increase in design activity in March. 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.
The American Institute of Architects (AIA) reported the March ABI score was 51.7, up from a mark of 50.4 in February. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 58.2, up from a reading of 56.6 the previous month.
“Business conditions at architecture firms generally are quite healthy across the country. However, billings at firms in the Northeast were set back with the severe weather conditions, and this weakness is apparent in the March figures,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The multi-family residential market has seen its first occurrence of back-to-back negative months for the first time since 2011, while the institutional and commercial sectors are both on solid footing.”
Key March ABI highlights:
• Regional averages: South (54.5), Midwest (51.0), West (50.4), Northeast (45.8)
• Sector index breakdown: institutional (53.2), commercial / industrial (53.0), multi-family residential (49.7), mixed practice (46.2)
• Project inquiries index: 58.2
• Design contracts index: 52.3
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
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. More at: http://www.aia.org/practicing/economics/AIAS076265
Related Stories
Multifamily Housing | Apr 26, 2017
Multifamily amenity trends: The latest in package delivery centers
Package delivery centers provide order and security for the mountains of parcels piling up at apartment and condominium communities.
Multifamily Housing | Apr 26, 2017
Huh? A subway car on the roof?
Chicago’s newest multifamily development features an iconic CTA car on its amenity deck.
High-rise Construction | Apr 26, 2017
Dubai’s newest building is a giant gilded picture frame
Despite currently being under construction, the building is the center of an ongoing lawsuit filed by the architect.
Architects | Apr 25, 2017
Two Mid-Atlantic design firms join forces
Quinn Evans Architects and Cho Benn Holback + Associates have similar portfolios with an emphasis on civic work.
BIM and Information Technology | Apr 24, 2017
Reconciling design energy models with real world results
Clark Nexsen’s Brian Turner explores the benefits and challenges of energy modeling and discusses how design firms can implement standards for the highest possible accuracy.
Higher Education | Apr 24, 2017
Small colleges face challenges — and opportunities
Moody’s Investor Service forecasts that closure rates for small institutions will triple in the coming years, and mergers will double.
Healthcare Facilities | Apr 24, 2017
Treating the whole person: Designing modern mental health facilities
Mental health issues no longer carry the stigma that they once did. Awareness campaigns and new research have helped bring our understanding of the brain—and how to design for its heath—into the 21st century.
Architects | Apr 20, 2017
Design as a business strategy: Tapping data is easier than you think
We have been preaching “good design matters” for a long time, demonstrating the connection between the physical environment and employee satisfaction, individual and team performance, and an evolving organizational culture.
Architects | Apr 20, 2017
‘Gateways to Chinatown’ project seeks the creation of a new neighborhood landmark for NYC’s Chinatown
The winning team will have $900,000 to design and implement their proposal.
