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Architecture Billings Index Continues Positive Momentum
2007 ends with historic 34 consecutive months of positive conditions
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For Immediate Release |
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Washington, D.C., January 23,
2008 — After a fall rebound from a summer slowdown, the Architecture
Billings Index (ABI) recorded another healthy score in December. As
a leading economic indicator of construction activity, the ABI
shows an approximate nine to twelve month lag time between
architecture billings and construction spending. The American
Institute of Architects (AIA) reported the December ABI rating was
55.4, up a fraction from the 55.3 mark in November (any score above
50 indicates an increase in billings), and inquiries for new
projects was 58.1.
The stretch of 34 straight months with a positive score is the
longest run in the history of the survey that began in 1995,
eclipsing the positive scores that continued from April 1998 to
December 2000.
“As the country braces for a possible recession in 2008, there
will likely be an easing in demand for design services.” said
AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While that
is a natural reaction, it is important to note that with positive
conditions for architecture billings going back over two years
nonresidential construction is expected to one of the sources of
strength in an otherwise uneven economy.”
Key December ABI highlights:
• Regional averages: Northeast (63.6), South (57.1), Midwest
(51.5), West (51.3)
• Sector index breakdown: commercial / industrial (62.1),
mixed practice (58.7), institutional (53.8), multi-family
residential (46.2)
• Billings inquiries index: 58.1
About the AIA Architecture Billings
Index
The Architecture Billings Index is derived from a monthly
“Work-on-the-Boards” survey and produced by the AIA
Economics & Market Research Group. Based on a comparison of
data compiled since the survey’s inception in 1995 with
figures from the Department of Commerce on Construction Put in
Place, the findings amount to a leading economic indicator that
provides an approximately nine to twelve month glimpse into the
future of nonresidential construction activity. The diffusion
indexes contained in the full report are derived from a monthly
survey sent to a panel of AIA member-owned firms. Participants are
asked whether their billings increased, decreased, or stayed the
same in the month that just ended. According to the proportion of
respondents choosing each option, a score is generated, which
represents an index value for each month.
About The American Institute of
Architects
For over 150 years, members of The American Institute of Architects
have worked with each other and their communities to create more
valuable, healthy, secure, and sustainable buildings and
cityscapes. AIA members have access to the right people, knowledge,
and tools to create better design, and through such resources and
access, they help clients and communities make their visions real.
www.aia.org
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