The last three months have shown steadily increasing demand for design services and the Architecture Billings Index (ABI) is now at its highest level since 2007.
The American Institute of Architects (AIA) reported the July ABI score was 55.8, up noticeably from a mark of 53.5 in June. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 66.0, following a very strong mark of 66.4 the previous month.
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 AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in July was 54.9.
“Business conditions for the design and construction marketplace, and those industries associated with it, appear to be well-positioned for continued growth in the coming months,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The key to a more widespread boost in design activity continues to be the institutional sector which is starting to exhibit signs of life after languishing for the better part of the last five-plus years.”
Key July ABI highlights:
- Regional averages: Northeast (55.5), South (55.1), Midwest (54.1), West (53.5)
- Sector index breakdown: mixed practice (61.0), multi-family residential (56.5), institutional (53.3), commercial / industrial (51.2)
- Project inquiries index: 66.0
- Design contracts index: 54.9
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. 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 recently released White Paper, Designing the Construction Future: Reviewing the Performance and Extending the Applications of the AIA’s Architecture Billings Index on the AIA website.
Related Stories
| Feb 21, 2012
Three Goettsch leaders elevated to AIA College of Fellows
Honor recognizes significant contributions to architecture and society.
| Feb 21, 2012
Skanska welcomes Morrison and Viviano to Atlanta office
Morrison will serve as a vice president and Viviano will serve as senior director of business development for Georgia.
| Feb 21, 2012
PV America West conference showcases solar growth market
Solar industry gathers March 19-21, 2012 in San Jose to discuss technology, market development and policy.
| Feb 21, 2012
SMPS announces Build Business 2012 keynote speakers
National conference set for July 11–13 in San Francisco.
| Feb 20, 2012
Comment period for update to USGBC's LEED Green Building Program now open
This third draft of LEED has been refined to address technical stringency and rigor, measurement and performance tools, and an enhanced user experience.
| Feb 20, 2012
Sto Corp. announces new technical director for Canada
Edgar will have full responsibility of specifications, details, website technical content, testing and approvals, and will support the Canada sales team.
| Feb 20, 2012
GAF introduces web portal for architects and specifiers
The new portal offers a clean look with minimal clutter to make it easier to find the technical information and product data that architects need.
| Feb 20, 2012
All Steel names Breagy director of metro New York
Breagy is responsible for overseeing this region’s sales team while strategically coordinating the sales efforts of Allsteel dealers and representatives in the tri-state area.
| Feb 17, 2012
Tremco Inc. headquarters achieves LEED Gold certification
Changes were so extensive that the certification is for new construction and not for renovation; officially, the building is LEED-NC.
