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.
