Economy

ABI Slips in January Following Strong December

Written by Sandy Williams


The Architecture Billings Index slipped into negative territory in January with a score of 49.5, down from 55.6 in December. A score above 50 indicates an increase in billings. The new projects inquiry rose to 60.0 from 57.6.

“This small decrease in activity, taking into consideration strong readings in project inquiries and new design contracts, isn’t exactly a cause for concern,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “The fundamentals of a sound nonresidential design and construction market persist.”

ABI Highlights for January 2017:

  • Regional averages: South (54.2), Northeast (53.0), Midwest (52.4), West (48.8)
  • Sector index breakdown: institutional (54.6), commercial / industrial (53.4), mixed practice (48.1), multi-family residential (48.1)
  • Project inquiries index: 60.0
  • Design contracts index: 52.1

About the AIA Architecture Billings Index

The Architecture Billings Index (ABI), produced by the American Institute of Architects, is considered a leading economic indicator of construction activity, and reflects the approximate 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. The monthly ABI index scores are centered around the neutral mark of 50, with scores above 50 indicating growth in billings and scores below 50 indicating a decline.

Below is a graph showing the history of the Architecture Billings Index and Inquiries Index. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

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