Washington, D.C. – January
20, 2016 –
There were a few occasions where demand for design services decreased from a
month-to-month basis in 2015, but the Architecture Billings Index (ABI)
concluded the year in positive terrain and was so in eight of the twelve months
of the year. 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 December ABI score was 50.9, up from the mark of 49.3 in the
previous month. This score reflects a slight increase in design services (any
score above 50 indicates an increase in billings). The new projects inquiry
index was 60.2, up from a reading of 58.6 the previous month.
“As has been the case for the past several years, there continues to be a mix of business conditions that architecture firms are experiencing,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Overall, however, ABI scores for 2015 averaged just below the strong showing in 2014, which points to another healthy year for construction this year.”
Key December ABI highlights:
• R
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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