WASHINGTON, D.C. — Making it seven consecutive months of positive momentum, the Architecture Billings Index (ABI) posted a score of 50.9, down from 53.7 in October. The score reflects an increase in design activity, with any score above 50 indicating an increase in billings.
A barometer of future non-residential construction activity, the ABI reflects the roughly nine- to 12-month lead time between architecture billings and construction spending. The index is produced by The American Institute of Architects (AIA) Economics & Market Research Group. The score is tabulated based on a monthly survey sent to a panel of AIA member-owned architecture firms.
“Demand for design services has slowed somewhat from the torrid pace of the summer, but all project sectors are seeing at least modest growth,” says Kermit Baker, AIA’s chief economist. “Architecture firms are expecting solid mid-single digit gains in revenue for 2014, but heading into 2015, they are concerned with finding quality contractors for projects, coping with volatile construction materials costs and with finding qualified architecture staff for their firms.”
The South region posted the highest three-month average ABI score (57.9) nationally, followed by the West (52.7), Midwest (49.8) and Northeast (46.7).
Among property types, multifamily posted the highest three-month ABI score (56.8), followed by mixed-use (52.6), institutional (51.3) and office/industrial (50.6). The regional and property sector scores are calculated as three-month moving averages, but the national index is reported as a monthly score.
The AIA has also added a new indicator measuring the trends in new design contracts at architecture firms that signals the direction of future architecture billings. The score for design contracts in November was 54.9. Like the national ABI, the design contracts score is a monthly number.
— John Nelson