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Architecture Billings Index Remains Weak
Business levels still declining, while institutional sector remains lone bright spot
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For Immediate Release |
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Washington, D.C., May 21,
2008 — After sinking to its lowest level ever in March, indicating a
rapid slowdown in billings at U.S. architecture firms, the
Architecture Billings Index (ABI) rose slightly in April. As a
leading economic indicator of construction activity, the ABI shows
an approximate nine to twelve month lag time between architecture
billings and construction spending. The American Institute of
Architects (AIA) reported the April ABI rating was 45.5, up from
the historic low mark of 39.7 in March (any score above 50
indicates an increase in billings). The inquiries for new projects
score was 53.9.
“After dropping rapidly the past two months, this uptick shows
that the slowdown is beginning to moderate,” said AIA Chief
Economist Kermit Baker, PhD, Hon. AIA. “Even though the
downturn in design billings has come on very quickly, most areas of
the country aren’t showing signs of an oversupply of
nonresidential facilities. That provides hope that this weak patch
may be relatively short-lived.”
Key April ABI highlights:
• Regional averages: South (46.6), Northeast (41.6), Midwest
(41.6), West (37.7)
• Sector index breakdown: institutional (50.4), mixed practice
(45.2) commercial / industrial (39.3) multi-family residential
(33.5)
• Project inquiries index: 53.9
About the AIA Architecture Billings
Index
The Architecture Billings Index is derived from a monthly
“Work-on-the-Boards” survey and produced by the AIA
Economics & Market Research Group. Based on a comparison of
data compiled since the survey’s inception in 1995 with
figures from the Department of Commerce on Construction Put in
Place, the findings amount to a leading economic indicator that
provides an approximately nine to twelve month glimpse into the
future of nonresidential construction activity. The diffusion
indexes contained in the full report are derived from a monthly
survey 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. According to the proportion of
respondents choosing each option, a score is generated, which
represents an index value for each month.
About The American Institute of
Architects
For over 150 years, members of The American Institute of Architects
have worked with each other and their communities to create more
valuable, healthy, secure, and sustainable buildings and
cityscapes. AIA members have access to the right people, knowledge,
and tools to create better design, and through such resources and
access, they help clients and communities make their visions real.
www.aia.org
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