As the nonresidential construction industry continues to struggle, the American Institute of Architects’ (AIA) Architecture Billings Index (ABI) showed a nominal improvement in September.
As a leading economic indicator of construction activity, the ABI reflects the approximate 9- to 12-month lag time between architecture billings and construction spending. It is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group.
AIA reported the September ABI rating was 43.1, up slightly from 41.7 in August. This score indicates a decline in demand for design services (any score above 50 indicates an increase in billings).
The new projects inquiry score was 59.1, its highest level since September 2007.
“The fact that inquiries for new projects are so high is an encouraging sign that we may be seeing new construction activity entering the design phase,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “But that optimism has to be tempered by the fact that the marketplace is so competitive that firms are broadening their search for new projects, thereby inflating the number of inquiries that they are reporting. However, some larger stimulus-funded building activity should be coming online over the next several months, partially offsetting the steep decline in private commercial construction.”
Key September ABI highlights:
Regional averages: Northeast (47.2), Midwest (43.0), South (42.7), West (36.0)
Sector index breakdown: multi-family residential (45.1), institutional (43.9), commercial / industrial (39.0), mixed practice (36.3),
Project inquiries index: 59.1
You must be logged in to post a comment.