Partner Channels

The Definitive Source of Information on the Following Subjects:

Building Automation | Building Envelope | Commercial Roofing | Cooling
Energy Measurement | LED Lighting | Lighting Control | Site Furnishings

Architecture Billings Index Remains in Reverse

Written by Heidi Schwartz. Posted in Facility Management

Tagged: , , ,

Published on June 22, 2011 with No Comments

On the heels of a sizeable decrease in April, the Architecture Billings Index (ABI) slowed even further in May. 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.

The American Institute of Architects (AIA) reported the May ABI score was 47.2, a slight decrease from a reading of 47.6 the previous month. This score reflects a continued decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 52.6, down from a mark of 55.0 in April, its lowest level in almost a year and a half.

“Whatever positive momentum that there had been seen in late 2010 and earlier this year has disappeared,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “The broader economy looks to be entering another soft spot, and certainly state budget constraints are adversely affecting the profession’s ability to work on institutional projects. But there is no denying that the prolonged credit freeze from lenders for financing commercial projects is the number one challenge to a recovery for the design and construction industry.”

Key May ABI highlights:
Regional averages: West (49.3), Northeast (47.6), South (47.5), Midwest (45.9)
Sector index breakdown: mixed practice (49.1) commercial / industrial (46.5), institutional (44.9)
Project inquiries index: 52.6

About Heidi Schwartz

Heidi Schwartz

Schwartz joined Group C Media in April 1989 as managing editor of Today's Facility Manager (TFM) magazine (formerly Business Interiors) where she was subsequently promoted to editor/co-publisher of the monthly trade magazine for facility management professionals. In September 2012, she took over the newly created position of internet director for TFM's parent company, Group C Media, where she is charged with developing content and creating online strategies for TFM and its sister publication, Business Facilities. Schwartz can be reached at schwartz@groupc.com.

Browse Archived Articles by

No Comments

There are currently no comments on Architecture Billings Index Remains in Reverse. Perhaps you would like to add one of your own?

Leave a Comment