Weak Market Conditions Persist According to Architecture Billings Index
Posted
07/19/2012
The Architecture Billings Index (ABI) saw more poor conditions
last month, indicating a drop in design activity at U.S.
architecture firms, and suggesting upcoming weakness in
spending on nonresidential construction projects. 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 June ABI score was 45.9,
nearly identical to the mark of 45.8 in May. This score
reflects a decrease in demand for design services (any score above
50 indicates an increase in billings). The new projects
inquiry index was 54.4, up slightly from mark of 54.0 the previous
month.
Key June ABI highlights:
- Regional averages: Midwest (48.0), South (47.6), Northeast
(46.4), West (44.3)
- Sector index breakdown: multi-family residential (49.0),
commercial / industrial (46.9), institutional (46.0), mixed
practice (45.9)
- Project inquiries index: 54.4
The regional and sector categories are calculated as a 3-month
moving average, whereas the index and inquiries are monthly
numbers.