WASHINGTON, D.C. — After beginning the year with a decline, the Architecture Billings Index (ABI) has posted three consecutive months of increasing demand for design activity at architecture firms. The American Institute of Architects (AIA) reported the April ABI score was 50.6, down from the mark of 51.9 in March but still in the positive territory. 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.
The design contracts index jumped from 51.8 in March to 54.3 in April. The metric tracks trends in the dollar volume of signed design contracts, with any score above 50 reflecting a growing value of the design contracts signed by AIA member-owned firms. Because the design contracts index functions as an early indicator of construction contract awards, Kermit Baker, AIA’s chief economist, is confident that the growth in the index will help the ABI maintain its positive momentum for the summer.
“The strong growth in design contracts — the strongest score for this indicator since last summer — certainly suggests that firms will be reporting growth in billings over the next several months,” says Baker.
All four regions of the U.S. reported positive business conditions in April. The South region posted the highest three-month average ABI score (52.2) nationally, followed by the Northeast (51.5), Midwest (50.8) and West (50.8).
Among property types, multifamily residential posted the highest three-month ABI score (53.7), followed by office/industrial (52.0), mixed-use (50.0) and institutional (49.0). The regional and property sector scores are calculated as three-month moving averages, but the national index is reported as a monthly score.
Founded in 1857, the AIA helps to create valuable and sustainable buildings and communities around the country. Through nearly 300 state and local chapters, the AIA also advocates for public policies that promote economic vitality and public wellbeing.
— John Nelson