Economy

April ABI Falls 3 Points

Written by Sandy Williams


Architecture billings took a sharp dive in April. The Architecture Billings Index dropped for the second time this year to a score of 48.8 from 51.7 in March, indicating a decrease in design services. (A score above 50 indicates an increase in billings).

The new projects inquiry index was 60.1 up from 58.2 the previous month. The design contracts index was at 53.1.

“The fundamentals in the design and construction industry remain very healthy,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The fact that both inquires for new projects and new design contracts continued to accelerate at a healthy pace in April points to strong underlying demand for design activity. However, April would typically be a month where these projects would be in full swing, but a severe winter in many parts of the Northeast and Midwest has apparently delayed progress on projects.”

The regional averages were: South (55.8), West (52.9), Midwest (49.9), and Northeast (43.2).

By sector the breakdown was: institutional (51.8), mixed practice (51.8), multi-family residential (49.0), and commercial/industrial (48.9).

The ABI, published monthly by the American Institute of Architects, reflects the nine to twelve month lead time between architecture billings and construction spending. The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

A history of the American Institute of Architects Billings and Inquiries Indexes can be found on here on our website.

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