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Continued Upward Trend in Architecture Billings Index
Highest reading from architects since August 2008
On the heels of a more than two point gain in February, the Architecture
Billings Index (ABI) was up again in March. As a leading economic indicator of
construction activity, the ABI reflects the approximate nine to twelve month lag
time between architecture billings and construction spending. The American
Institute of Architects (AIA) reported the March ABI rating was 46.1, up from a
reading of 44.8 the previous month. Though this score reflects a continued
decline in demand for design services (any score above 50 indicates an increase
in billings), it is the highest score since August 2008. The new projects
inquiry index was 58.5.
“This is certainly an encouraging sign that we could be moving closer to a
recovery phase, even though we continue to hear about mixed conditions across
the country,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Firms are
still reporting an unusual amount of variation in the level of demand for design
services, from improving to poor to virtually non-existent. This increasing
volatility is often a sign that overall business conditions may begin to change
in the coming months.”
Key March ABI highlights:
-
Regional averages: Midwest (50.5), Northeast (47.0), West (46.0), South
(44.4)
-
Sector index breakdown: multi-family residential (47.3), institutional
(46.8), mixed practice (45.0), commercial / industrial (44.7)
-
Project inquiries index: 58.5
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards”
survey and produced by the AIA Economics & Market Research Group. Based on a
comparison of data compiled since the survey’s inception in 1995 with figures
from the Department of Commerce on Construction Put in Place, the findings
amount to a leading economic indicator that provides an approximately nine to
twelve month glimpse into the future of nonresidential construction activity.
The diffusion indexes contained in the full report are derived from a monthly
survey 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. According to the proportion of respondents choosing each option, a score
is generated, which represents an index value for each month. The regional and
sector data is formulated using a three-month moving average.
For more information visit
www.aia.org.
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