Washington, D.C. – June 18, 2014 – On the heels of
consecutive months of decreasing demand for design services, the Architecture
Billings Index (ABI) has returned to positive territory. 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 May ABI score was 52.6,
up sharply from a mark of 49.6 in April. This score reflects an increase in
design activity (any score above 50 indicates an increase in billings). The new
projects inquiry index was 63.2, up from the reading of 59.1 the previous
month.
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 May was 52.5.
“Volatility continues to be the watchword in the design and
construction markets, with firms in some regions of the country, and serving
some sectors of the industry, reporting strong growth, while others are
indicating continued weakness,” said AIA Chief Economist Kermit Baker, Hon.
AIA, PhD. “However, overall, it appears that activity has recovered from the
winter slump, and design professions should see more positive than negative
numbers in the coming months.”
Key May ABI highlights:
- Regional averages: South (58.1), Midwest (51.3), Northeast (47.6) , West (46.9)
- Sector index breakdown: multi-family residential (58.2), commercial / industrial (53.6), mixed practice (50.4), institutional (47.3)
- Project inquiries index: 63.2
- Design contracts index: 52.5
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 web site.
Source:
AIA
No comments:
Post a Comment