 |
|
|
| |
| 
|
| |
Architecture Billings Index Continues in Negative Territory
Sixth straight month with a decrease in billings
|
| |
|
For Immediate Release |
|
|
|
| |
Washington, D.C., August 20,
2008 — Despite having its highest score since January, the Architecture
Billings Index (ABI) continues to point to difficult conditions for
the nonresidential construction market. There have been six
consecutive months with negative scores, indicating that business
levels at U.S architecture firms continue to worsen. 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 July ABI rating was 46.8, up slightly
from the 46.1 mark in June (any score above 50 indicates an
increase in billings). The inquiries for new projects score was
54.6.
“Financing for new projects continues to be a problem,”
said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Many
projects are being reconsidered due to construction cost increases.
And while there are a good number of projects still in the queue,
owners are taking longer to proceed to the next phase of the design
process.”
Key July ABI highlights:
• Regional averages: Midwest (50.0), South (47.7), Northeast
(46.5), West (42.2)
• Sector index breakdown: institutional (53.6), commercial /
industrial (48.8), mixed practice (45.6) multi-family residential
(39.2)
• Project inquiries index: 54.6
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. By using sustainable design practices, materials, and
techniques, AIA architects are uniquely poised to provide the
leadership and guidance needed to provide solutions to address
climate change. AIA architects walk the walk on sustainable design.
Visit www.aia.org/walkthewalk.
|
|
|
|
|
