AIA’s Architecture Billings Index Shows Positive Signals

The Architecture Billings Index (ABI) for October reached its highest level since August 2008, according to the AIA. This came amidst a continued high level of inquiries for new projects. October’s ABI rating was 46.1, up significantly from 43.1 in September. And while any score below 50 still indicates a decline in demand for design services, the new projects inquiry score was 58.5, slightly down from 59.1 in September.

 

Comments from the AIA’s chief economist Kermit Baker, PhD., Hon. AIA were guardedly optimistic. “This news could prove to be an early signal towards a recovery for the design and construction industry,” he said. “On the other hand, because we continue to get reports of architecture firms struggling in a competitive marketplace with a continued decline in commercial property values, it is far too early to think we are out of the woods.”

 

Here’s the breakdown:

•       Regional averages: South (46.1), Northeast (44.3),  Midwest (43.0), West (42.8)

•       Sector index breakdown: institutional (48.7), multi-family residential (45.4), commercial / industrial (41.7), mixed practice (39.1)

•       Project inquiries index: 58.5

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.