AIA Billing Index Shows Increase in Demand

Despite overall declines in architecture billings, the AIA Billings index shows slight increase
By: Brian Gallagher - Thursday, March 25, 2010
Source: AIA

According to the American Institute of Architects, the Architecture Billings Index (ABI) moved slightly higher in February. The index for last month was 44.8, compared to 42.5 in January. The February index indicates a continued decline in demand for design services. Any reading above 50 indicates an increase in billings.

The ABI is widely viewed as a leading economic indicator of construction activity. The ABI typically reflects an approximate nine to twelve month lag time between architecture billings and construction spending.

"We continue to hear that funding dedicated for construction projects in the stimulus package has not yet been awarded, resulting in a bottleneck of potential projects that could help jump-start the economy," said Kermit Baker, PhD, Hon. AIA, chief economist at the American Institute of Architects, which compiles the ABI. "That, coupled with a persistently rigid credit market for private sector projects, is a key reason why the design and construction industry continue to suffer at near historic levels in terms of job losses." The AIA conducts a monthly survey of architectural firms to build the index.

Key February 2010 ABI highlights:
Regional averages: Midwest (49.4), Northeast (44.1), West (43.6), South (40.7)

Sector index breakdown: multi-family residential (47.3), institutional (44.2), mixed practice (43.3), commercial / industrial (43.2)

Project inquiries index: 52.0

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