The latest Architecture Billings Index (ABI) shows that billings at architecture firms across the country continue to increase. The American Institute of Architects (AIA) reported the November ABI score was 53.2, up from the mark of 52.8 in October. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.6, up slightly from the 59.4 mark of the previous month.

Key November ABI highlights

• Regional averages:
  • Northeast (56.3)
  • Midwest (54.4)
  • South (51.1)
  • West (49.6)
• Sector index breakdown:
  • multi-family residential (55.9)
  • mixed practice (53.9)
  • commercial/industrial (52.0)
  • institutional (50.5)
• Project inquiries index: 59.6

The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

The Architecture Billings Index (ABI) saw more poor conditions last month, indicating a drop in design activity at U.S. architecture firms, and suggesting upcoming weakness in spending on nonresidential construction projects. 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 June ABI score was 45.9, nearly identical to the mark of 45.8 in May. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 54.4, up slightly from mark of 54.0 the previous month.

Key June ABI highlights:

• Regional averages: Midwest (48.0), South (47.6), Northeast (46.4), West (44.3)
• Sector index breakdown: multi-family residential (49.0), commercial / industrial (46.9), institutional (46.0), mixed practice (45.9)
• Project inquiries index: 54.4

The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

Led by the commercial sector, the Architecture Billings Index (ABI) has remained in positive territory four months in a row.  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 February ABI score was 51.0, following a mark of 50.9 in January.  This score reflects a slight increase in demand for design services (any score above 50 indicates an increase in billings).  The new projects inquiry index was 63.4, up from mark of 61.2 the previous month and its highest reading since July 2007.

Key February ABI highlights:

• Regional averages: Midwest (56.0), South (51.3),  Northeast (51.0), West (45.6)
• Sector index breakdown: commercial / industrial (55.1), multi-family residential (53.3),institutional (50.3), mixed practice (46.3)
• Project inquiries index: 63.4

The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.

After a sharp dip in September, the Architecture Billings Index (ABI) climbed nearly three points in October. 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 October ABI score was 49.4, following a score of 46.9 in September. This score reflects an overall decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.3, up from a reading of 54.3 the previous month.

Key October ABI highlights:

• Regional averages: Northeast (51.7), South (49.1), Midwest (47.7), West (43.5)
• Sector index breakdown: commercial / industrial (53.5), multi-family residential (51.3),institutional (47.3), mixed practice (42.0)
• Project inquiries index: 57.3

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.

The first two months of 2011 were not as strong as the final quarter of 2010, according to the Architecture Billings Index (ABI). 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 February ABI score was 50.6, up slightly from a reading of 50.0 the previous month. This score reflects a modest increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.4, compared to a mark of 56.5 in December.

“Overall demand for design services seems to be treading water over the last two months,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “We’ve been preaching patience and cautious optimism for a full recovery because there continues to be a wide range of business conditions for architecture firms that are also influenced by firm size, practice specialties and regional location. We still expect the road to recovery to move at a slow, but steady pace.”

Key February ABI highlights:

• Regional averages: Midwest (55.3), South (50.1), West (49.1), Northeast (46.4)
• Sector index breakdown: commercial / industrial (55.0), mixed practice (51.3), multi-family residential (49.7), institutional (48.9)
• Project inquiries index: 56.4