Architecture Billings Index continues positive momentum

Three out of past four months have seen positive business conditions, highest marks since 2007

01/20/2011


On the heels of its highest mark since 2007, the Architecture Billings Index (ABI) jumped more than two points in December. As a leading economic indicator of construction activity, AIA Logothe ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the December ABI score was 54.2, up from a reading of 52.0 the previous month. 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 62.6, up slightly from a mark of 61.4 in November. [You can see this press release online.]

“This is more promising news that the design and construction industry is continuing to move toward a recovery,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. However, historically December is the most unpredictable month from a business standpoint, and therefore the most difficult month from which to interpret a trend. The coming quarter will give us a much better sense of the strength of the apparent upturn in design activity. ”

Key December ABI highlights:

  • AIA-ABI logoRegional averages: Northeast (55.3), South (54.8), Midwest (52.9), West (48.4)
  • Sector index breakdown: multi-family residential (60.1), commercial / industrial (52.7), institutional (50.6), mixed practice (47.8)
  • Project inquiries index: 62.6

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.

AIA Economics & Market Research Group



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
2016 Product of the Year Finalists: Vote now; Data center Q&A; LED codes; Smart buildings
Fire pump power system design: How to design safe, reliable fire pump power service; Water management in commercial buildings; Emergency egress, illumination
Pump technology design: Selecting pumps and pipes; Class A office buildings; NFPA 101-2015; ASHRAE 90.1 updates; Motors, drives, and HVAC efficiency
Designing generator systems; Using online commissioning tools; Selective coordination best practices
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
click me