Architecture Billings Index Ends First Quarter on a Positive Note

The Architectural Billings Index (ABI), a leading economic indicator of construction activity, ended the first quarter of 2017 on a positive note. The ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending.

“The first quarter started out on uneasy footing, but fortunately ended on an upswing  entering the traditionally busy spring season,” says AIA Chief Economist, Kermit Baker, Hon. AIA, PhD, in a release.  “All sectors showed growth except for the commercial/industrial market, which, for the first time in over a year displayed a decrease in design services.”

According to the American Institute of Architects (AIA), the March ABI score was 54.3, up from a score of 50.7 in the previous month. The March score reflects a sizable increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.8, down from a reading of 61.5 the previous month, while the new design contracts index dipped from 54.7 to 52.3.

Key March ABI highlights:

• Regional averages: Midwest (54.6), South (52.6), Northeast (52.4), West (50.2)

• Sector index breakdown: multi-family residential (54.6), mixed practice (53.7), institutional (52.9), commercial / industrial (49.8)

• Project inquiries index: 59.8

• Design contracts index: 52.3

The Architecture Billings Index (ABI), produced by the AIA Economics & Market Research Group, is a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction spending activity.