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
| Jan 30, 2014
Mayors of 10 metros unite to cut building-related climate pollution
Organizers say combined initiative could cut as much climate-change pollution as generated by 1 million cars every year, and lower energy bills by nearly $1 billion annually.
| Jan 30, 2014
See how architects at NBBJ are using computational design to calculate the best views on projects [video]
In an ideal world, every office employee would have a beautiful view from his or her desk. While no one can make that happen in real life, computational design can help architects maximize views from every angle.
| Jan 30, 2014
The evolving workplace: One designer's inspiration board
"Open office" has been a major buzzword for decades, and like any buzzword, some of the novelty has worn off. I don't believe we will abandon the open office, but I do think we need to focus on providing a dynamic mix of open and closed spaces.
| Jan 30, 2014
How reverse engineering nature can spur design innovation
It’s not enough to copy nature. Today’s designers need a deeper understanding of environmental nuance, from the biome in.
| Jan 30, 2014
What to expect in the metal building industry in 2014
Every year brings changes. This one won’t be any different. We’ll see growth in some areas, declines in others. Here’s a little preview of what we’ll be writing about 2014 when 2015 comes rolling in.
| Jan 30, 2014
What's in store for healthcare capital markets in 2014?
Despite the shake up stemming from the Affordable Care Act, 2014 will be an active year in healthcare capital markets, according to real estate experts from CBRE Healthcare.
| Jan 29, 2014
Richard Meier unveils 'urban courtyard' scheme for Mexico City towers
A grand atrium, reaching some 30 stories, highlights the contemporary, bright-white design scheme unveiled this week by Richard Meier & Partners for a new mixed-use development in Mexico City.
| Jan 29, 2014
Historic church will be part of new condo building in D.C.
Sorg Architects unveiled a design scheme for 40 condos in a six-story building, which will wrap around an existing historic church, and will itself contain four residential units.
| Jan 29, 2014
Hotel, retail, recreation sectors to lead growth in 2014
AIA's Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, is projecting that spending will see a 5.8% increase in 2014, led by the hotel, retail, and amusement/recreation sectors.
| Jan 29, 2014
Notre Dame to expand football stadium in largest project in school history
The $400 million Campus Crossroads Project will add more than 750,000 sf of academic, student life, and athletic space in three new buildings attached to the school's iconic football stadium.
