Washington, D.C. – December 18, 2013 – After six months of
steadily increasing demand for design services, the Architecture Billings Index
(ABI) paused in November. 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 November ABI score was 49.8, down from a mark of
51.6 in October. This score reflects a slight decrease in design services (any
score above 50 indicates an increase in billings). The new projects inquiry
index was 57.8, down from the reading of 61.5 the previous month.
“Architecture firms continue to report widely varying views
of business conditions across the country. This slight dip is likely just a
minor, and hopefully temporary, lull in the progress of current design
projects,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “But there is
a continued uneasiness in the marketplace as businesses attempt to determine
the future direction of demand for commercial, industrial, and institutional
buildings.”
Key November ABI highlights:
• Regional
averages: South (52.0), Midwest (51.6), West (50.2), Northeast (47.5)
• Sector index
breakdown: multi-family residential (55.2), mixed practice (53.1), commercial /
industrial (48.6), institutional (47.7)
• Project
inquiries index: 57.8
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.
Source: AIA
No comments:
Post a Comment