With increasing demand for design services, the Architecture Billings Index (ABI) is continuing to strengthen. 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 reported the February ABI score was 54.9, up slightly from a mark of 54.2 in January. This score reflects a strong increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 64.8, higher than the reading of 63.2 the previous month – and its highest mark since January 2007.
“Conditions have been strengthening in all regions and construction sectors for the last several months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Still, we also continue to hear a mix of business conditions in the marketplace as this hesitant recovery continues to unfold.”
Key February ABI highlights:
- Regional averages: Northeast (56.7), Midwest (54.7), West (54.7), South (52.7)
- Sector index breakdown: multi-family residential (60.9), mixed practice (56.9), commercial / industrial (53.3), institutional (50.7)
- Project inquiries index: 64.8.
- The regional and sector categories are calculated as a 3-month moving average, whereas the index 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. 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
Architects | Mar 11, 2016
German artist recreates Brutalist buildings with LEGO blocks
Arndt Schlaudraff brings the beauty out of the rugged, linear style of buildings most popular a half century ago.
Architects | Mar 11, 2016
Architecture for Humanity rebrands itself as Open Architecture Collaborative
With a new name, logo, and mission, the Open Architecture Collaborative is seeking a fresh start.
Architects | Mar 11, 2016
AIA survey finds many women and minority architects still feeling underrepresented and unfulfilled
Dissatisfaction with “work-life balance” and compensation are cited as reasons why companies’ diversity strategies may be faltering.
University Buildings | Mar 11, 2016
How architects can help community colleges promote community on campus
Even in the face of funding challenges and historic precedent, there are emerging examples of how partnership between two-year academic institutions and designers can further elevate community on campus. CannonDesign's Carisima Koenig has a few key examples.
Architects | Mar 10, 2016
Value engineering: How to manage the process and limit the risk of VE
AEC consultant Steve Whitehorn shares several ways in which architects can be more effective managers of value-engineered change.
Architects | Mar 9, 2016
Two Houston firms merge to form Method Architecture
In mid-2016, Architects-Plus and Three Square Design Group will join to make a studio that will design industrial centers, corporate interiors, breweries, and more.
Hotel Facilities | Mar 7, 2016
Exclusive villas and spa in China will be built at the center of a lake
The only connection between the complex and the mainland will be a narrow pedestrian bridge.
Office Buildings | Mar 2, 2016
HDR redesigns Twin Cities' studio to have coffee shop vibe
With open spaces, huddle rooms, and a design lab, the firm's new digs are drastically different than the old studio, which felt like working in a law office. Design Principal Mike Rodriguez highlights HDR's renovation plan.
Architects | Feb 25, 2016
12 architects selected for 2016 AIA Young Architects Award
Winners include Amy Kalar and Karen Lu, both with HGA, BNIM's Carey Nagle, and MSR Design's Bob Ganser.
Architects | Feb 24, 2016
Is the booming freelance economy a threat to AEC firms?
By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.
