Coming off a modest increase after two consecutive months of contraction, the Architecture Billings Index (ABI) recorded another small increase in demand for design services. As a leading economic indicator of construction activity, the ABI reflects the approximate 9- to 12-month lead time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the November ABI score was 50.6, essentially unchanged from the mark of 50.8 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 59.5, up from a reading of 55.4 the previous month.
“Without many details of the policies proposed, it’s still too early to tell the likely impact of the programs of the new administration,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “However, architects will be among the first to see what new construction projects materialize and what current ones get delayed or cancelled, so the coming months should tell us a lot about the future direction of the construction market.”
Key November ABI highlights:
* Regional averages: South (51.3), Midwest (50.9), Northeast (50.8), West (48.6)
* Sector index breakdown: multi-family residential (51.7), mixed practice (51.3), commercial / industrial (50.4), institutional (49.5)
* Project inquiries index: 59.5
* Design contracts index: 50.2
(The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.)