Architecture Billings Index Inches Back into Positive Territory
Posted
09/20/2012
On the heels of a nearly three-point increase, the Architecture
Billings Index (ABI) climbed into positive terrain for the first
time in five months. As a leading economic indicator of
construction activity, the ABI reflects the approximate nine to
twelve month lag time between architecture billings and
construction spending. The American Institute of Architects
(AIA) reported the August ABI score was 50.2, up from the mark of
48.7 in July. 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 57.2, up from
mark of 56.3 the previous month.
Key August ABI highlights:
- Regional averages: South (52.2), West (51.2), Northeast
(45.5), Midwest (45.3)
- Sector index breakdown: multi-family residential (53.0),
institutional (50.2) commercial / industrial (47.9), mixed practice
(46.8)
- Project inquiries index: 57.2
The regional and sector categories are calculated as a
3-month moving average, whereas the index and inquiries are monthly
numbers.