flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

AIA reports slight contraction in Architecture Billings Index

billboard - default
interstitial1 - interstitial
Market Data

AIA reports slight contraction in Architecture Billings Index

Multifamily residential sector improving after sluggish 2015.


By AIA | February 17, 2016

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.

Following a generally positive performance in 2015, the Architecture Billings Index has begun this year modestly dipping back into negative terrain. The AIA reported the January ABI score was 49.6, down slightly from the mark of 51.3 in the previous month. This score reflects a minor decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 55.3, down from a reading of 60.5 the previous month.

“The fundamentals are mostly sound in the nonresidential design and construction market,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “January was a rocky month throughout the economy, with falling oil prices, international economic concerns, and with steep declines in stock market valuations in the U.S. and elsewhere. Some of the fallout of this uncertainty may have affected progress on design projects.”

Key January* ABI highlights:

  • Regional averages: West (50.8), Northeast (50.4), South (50.3), Midwest (48.9),
  • Sector index breakdown: multifamily residential (51.9), commercial / industrial (50.5), institutional (49.9), mixed practice (49.0)
  • Project inquiries index: 55.3
  • Design contracts index: 50.9

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

* Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.

Related Stories

Market Data | Dec 5, 2021

Construction adds 31,000 jobs in November

Gains were in all segments, but the industry will need even more workers as demand accelerates.

Market Data | Dec 5, 2021

Construction spending rebounds in October

Growth in most public and private nonresidential types is offsetting the decline in residential work.

Market Data | Dec 5, 2021

Nonresidential construction spending increases nearly 1% in October

Spending was up on a monthly basis in 13 of the 16 nonresidential subcategories.

Market Data | Nov 30, 2021

Two-thirds of metro areas add construction jobs from October 2020 to October 2021

The pandemic and supply chain woes may limit gains.

Market Data | Nov 22, 2021

Only 16 states and D.C. added construction jobs since the pandemic began

Texas, Wyoming have worst job losses since February 2020, while Utah, South Dakota add the most.

Market Data | Nov 10, 2021

Construction input prices see largest monthly increase since June

Construction input prices are 21.1% higher than in October 2020.

Market Data | Nov 5, 2021

Construction firms add 44,000 jobs in October

Gain occurs even as firms struggle with supply chain challenges.

Market Data | Nov 3, 2021

One-fifth of metro areas lost construction jobs between September 2020 and 2021

Beaumont-Port Arthur, Texas and Sacramento--Roseville--Arden-Arcade Calif. top lists of gainers.

Market Data | Nov 2, 2021

Construction spending slumps in September

A drop in residential work projects adds to ongoing downturn in private and public nonresidential.

boombox2 -
native1 -

More In Category




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 


Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: