ABI Takes a Dip in NovemberDecember 23rd, 2015 | Category: Industry News
The Architecture Billings Index (ABI) declined in November, recording a score of 49.3. That’s down from 53.1 the previous month, according to the American Institute of Architects (AIA).
As a leading economic indicator of construction activity, the ABI reflects the roughly nine- to 12-month lead time between architecture billings and construction spending. November’s score reflects a decrease in design services, as any score above 50 indicates an increase in billings.
The new projects inquiry index was 58.6, barely up from a reading of 58.5 the previous month.
“Since architecture firms continue to report that they are bringing in new projects, this volatility in billings doesn’t seem to reflect any underlying weakness in the construction sector,” says AIA chief economist Dr. Kermit Baker. “Rather, it could reflect the uncertainty of moving ahead with projects given the continued tightness in construction financing and the growing labor-shortage problem gripping the entire design and construction industries.”
Key November ABI highlights:
- By region: South (55.4), West (54.5), Midwest (47.8), Northeast (46.2).
- By sector: multi-family residential (53.8), institutional (52.0), commercial/industrial (51.0), mixed practice (47.6).