Economy

ABI Improves Slightly in February

March 19, 2015

The Architecture Billings Index inched up slightly in February after falling below the neutral point in January. The ABI, which reflects the nine to twelve month lead time between architecture billings and construction spending, registered 50.4, up from 49.9 the previous month. Any score over 50 indicates an increase in billings.

The ABI has been above 50 for ten of the last twelve months and February’s score indicates a minor increase in design services. The new projects inquiry declined 2.1 points to 56.6 in February.

“The health of the institutional market has been the key factor for positive business conditions for the design and construction industry in recent months, and it is encouraging to see that sector remain on solid footing,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “However, we’re seeing some slowing in the other major construction sectors. Design billings for residential projects had its first negative month in over three years, and commercial design billings have seen only modest growth in recent years.”

Key February ABI highlights:

Regional averages: South (52.5), Midwest (50.2), Northeast (48.0), West (46.7)
Sector index breakdown: institutional (52.2), commercial / industrial (51.4), multi-family residential (48.9), mixed practice (45.3)
Project inquiries index: 56.6
Design contracts index: 50.0

The ABI is published by the American Institute of Architects. Regional and sector categories are a 3 month moving average. The national index, design contracts and inquiries are monthly numbers.

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{amchart id=”64″ AIA ABI Index}