AIA’s Architecture Billings Index Down Significantly

The Architecture Billings Index (ABI) dropped substantially in November to 42.8 after it reached its highest level since August 2008 with an October mark of 46.1, according to the AIA. Any score below 50 indicates a decline in demand for design services. The level of inquiries for new projects remained high and unchanged at 58.5.

 

“There continues to be a lot of uncertainty in the construction industry that likely will delay new projects in the near future,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Perhaps the President’s plan calling for loans for small business, funding for infrastructure projects, and rebates for homeowners making energy efficient improvements will help speed a recovery in the construction industry.”

 

Here’s the breakdown:

• Regional averages: South (46.4), Northeast (45.0),  Midwest (43.7), West (41.1)
• Sector index breakdown: institutional (47.0), multi-family residential (45.8), mixed practice (42.8), commercial / industrial (40.7),
• Project inquiries index: 58.5

As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.