Substantial Drop in Architecture Billings Index
Posted
06/21/2012
Following the first negative reading in five months, the
Architecture Billings Index (ABI) has had a significant drop in
May. 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 May
ABI score was 45.8, following a mark of 48.4 in April. This
score reflects a sharp decrease in demand for design services (any
score above 50 indicates an increase in billings). The new
projects inquiry index was 54.0, down slightly from mark of 54.4
the previous month.
Key May ABI highlights:
- Regional averages: Northeast (48.6), West (47.6), Midwest
(46.8), South (46.1)
- Sector index breakdown: commercial / industrial (50.7),
multi-family residential (48.9), institutional (45.6), mixed
practice (41.5)
- Project inquiries index: 54.0
The regional and sector categories are calculated as a 3-month
moving average, whereas the index and inquiries are monthly
numbers.