Washington, D.C. – November 17, 2010 – Following the first positive reading since January 2008, the Architecture Billings Index (ABI) dropped nearly two points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the October ABI score was 48.7, down from a reading of 50.4 the previous month. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.7, down slightly from a nearly three-year high mark of 62.3 in September.
“This is disappointing news, but not altogether that surprising,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “We were anticipating a slow recovery period and it is likely that there will be some fits and starts before conditions show consistent improvement. Right now, reluctance from lending institutions to provide credit for construction projects and a sluggish economy are the main impediments to a revival of the design and construction industry.”
Key October ABI highlights:
Regional averages: Northeast (54.5), Midwest (51.8), South (48.6), West (44.3)
Sector index breakdown: commercial / industrial (54.5), institutional (50.8), multi-family residential (49.1), mixed practice (43.2)
Project inquiries index: 61.7
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
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org
Related Stories
Sponsored | Building Enclosure Systems | May 16, 2023
4 steps to a better building enclosure
Dividing the outside environment from the interior, the building enclosure is one of the most important parts of the structure. The enclosure not only defines the building’s aesthetic, but also protects occupants from the elements and facilitates a comfortable, controlled climate. With dozens of components comprising the exterior assemblies, from foundation to cladding to roof, figuring out which concerns to address first can be daunting.
Multifamily Housing | May 16, 2023
Legislators aim to make office-to-housing conversions easier
Lawmakers around the country are looking for ways to spur conversions of office space to residential use.cSuch projects come with challenges such as inadequate plumbing, not enough exterior-facing windows, and footprints that don’t easily lend themselves to residential use. These conditions raise the cost for developers.
Headquarters | May 16, 2023
Workplace HQ for party clothing company Shinesty celebrates its bold, whimsical products
The new Denver headquarters for Shinesty, a party clothing company, was designed to match the brand’s fun image with an iconic array of colors, textures, and prints curated by the design agency, Maximalist. Shinesty’s mission, to challenge the world to live more freely and “take itself less seriously,” is embodied throughout the office interior.
Office Buildings | May 15, 2023
Sixteen-story office tower will use 40% less energy than an average NYC office building
This month marks the completion of a new 16-story office tower that is being promoted as New York City’s most sustainable office structure. That boast is backed by an innovative HVAC system that features geothermal wells, dedicated outdoor air system (DOAS) units, radiant heating and cooling, and a sophisticated control system to ensure that the elements work optimally together.
Life of an Architect Podcast | May 15, 2023
Life of an Architect Podcast Ep. 125: What Makes a Great Employee?
How do you define a great employee? The answer is most likely dependent on who is attempting to respond: the employee or the employer. Life of an Architect's Bob Borson, FAIA, and Andrew Hawkins, AIA, talk about the traits and characteristics of great employees.
K-12 Schools | May 12, 2023
In Virginia, a new high school building helps reimagine the experience for 1,600 students
In Virginia, the City of Alexandria recently celebrated the topping out of a new building for Alexandria City High School. When complete in 2025, the high-performance structure will accommodate 1,600 students.
University Buildings | May 11, 2023
New ‘bold and twisting’ building consolidates School of Continuing Studies at York University
The design of a new building that consolidates York University’s School of Continuing Studies into one location is a new architectural landmark at the Toronto school’s Keele Campus. “The design is emblematic of the school’s identity and culture, which is centered around accelerated professional growth in the face of a continuously evolving labor market,” according to a news release from Perkins&Will.
Sustainability | May 11, 2023
Let's build toward a circular economy
Eric Corey Freed, Director of Sustainability, CannonDesign, discusses the values of well-designed, regenerative buildings.
Hotel Facilities | May 9, 2023
A new camping destination near Utah’s Zion National Park offers a variety of all-season lodgings and amenities
Outdoor lodging brand AutoCamp has opened a new camping destination near Utah’s Zion National Park. A 16-acre property, AutoCamp Zion is located between the Virgin River and the desert of Southern Utah.
Headquarters | May 9, 2023
New Wells Fargo development in Texas will be bank’s first net-positive campus
A new Wells Fargo development in the Dallas metroplex will be the national bank’s first net-positive campus, expected to generate more energy than it uses. The 850,000-sf project on 22 acres will generate power from solar panels and provide electric vehicle charging stations.
