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
| Nov 18, 2013
Lord Aeck Sargent opens metro D.C. office, updates brand
Architecture, design, and planning firm unveils its sixth office, plus a new visual identity system and website
| Nov 18, 2013
How do construction professionals use social media?
LinkedIn is the social network used by most construction professionals, according to the results of a newly released national survey conducted by the Construction Marketing Association.
| Nov 17, 2013
How to spend your first 15 minutes with a prospect
Every business development person has been there. You’ve finally earned a few minutes to impress a prospect that you’ve been pursuing. This is your opportunity to shine. What do you say?
| Nov 17, 2013
Meet up with the BD+C team at Greenbuild. Drinks are on us!
To all our friends in the AEC industry, you are cordially invited to join the BD+C team at several fun events during the Greenbuild show this week. No RSVP required. Just show up and enjoy.
| Nov 15, 2013
Halls of ivy keep getting greener and greener
Academic institutions have been testing the limits of energy-conserving technologies, devising new ways to pay for sustainability extras, and extending sustainability to the whole campus.
| Nov 15, 2013
Pedia-Pod: A state-of-the-art pediatric building module
This demonstration pediatric treatment building module is “kid-friendly,” offering a unique and cheerful environment where a child can feel most comfortable.
| Nov 15, 2013
Metal makes its mark on interior spaces
Beyond its long-standing role as a preferred material for a building’s structure and roof, metal is making its mark on interior spaces as well.
| Nov 14, 2013
Fan of Frank Lloyd Wright? Here's your chance to run his architecture school
The Frank Lloyd Wright School of Architecture has launched a search for a new director. Deadline for applications is January 6, 2014.
| Nov 13, 2013
Government work keeps green AEC firms busy
With the economy picking up, many stalled government contracts are reaching completion and earning their green credentials.
| Nov 13, 2013
First look: Renzo Piano's addition to Louis Kahn's Kimbell Art Museum [slideshow]
The $135 million, 101,130-sf colonnaded pavilion by the famed architect opens later this month.
