Washington, D.C. – October 21, 2015 – The Architecture
Billings Index (ABI) returned to positive territory after a slight dip in
August, and has seen growth in six of the nine months of the year so far. 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
September ABI score was 53.7, up from a mark of 49.1 in August. This score
reflects an increase in design services (any score above 50 indicates an
increase in billings). The new projects inquiry index was 61.0, down from a
reading of 61.8 the previous month.
“Aside from uneven demand for design services in the
Northeast, all regions are project sectors are in good shape,” said AIA Chief
Economist Kermit Baker, Hon. AIA, PhD. “Areas of concern are shifting to supply
issues for the industry, including volatility in building materials costs, a
lack of a deep enough talent pool to keep up with demand, as well as a lack of
contractors to execute design work.”
Key September ABI highlights:
• Regional averages: South (54.5), Midwest (54.2), West
(51.7) Northeast (43.7)
• Sector index breakdown: mixed practice (52.6),
institutional (51.5), commercial / industrial (50.9) multi-family residential
(49.5)
• Project inquiries index: 61.0
• Design contracts index: 53.2
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.
About The American
Institute of Architects
Founded in 1857, the American Institute of Architects
consistently works 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 wellbeing. 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
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