Following its highest mark since August 2008, the Architecture Billings Index (ABI) dropped more than three points in November. The American Institute of Architects (AIA) reported the November ABI rating was 42.8, down from 46.1 in October. This score indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score remained high, however, at 58.5, the same mark as in October.
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. 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.
“There continues to be a lot of uncertainty in the construction industry that likely will delay new projects in the near future,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Perhaps the President’s plan calling for loans for small business, funding for infrastructure projects and rebates for homeowners making energy efficient improvements will help speed a recovery in the construction industry.”
Key November ABI highlights:
Regional averages: South (46.4), Northeast (45.0), Midwest (43.7), West (41.1)
Sector index breakdown: institutional (47.0), multi-family residential (45.8), mixed practice (42.8), commercial / industrial (40.7)
Project inquiries index: 58.5
You must be logged in to post a comment.