Architecture Billings Index Produces a Negative April Score
The April slow down in architecture billings was significant enough to result in a negative score for the Architecture Billings Index (ABI), released by The American Institute of Architects (AIA) on May 22, 2013. The April score of 48.6 was the lowest in almost a year. The new projects inquiry index score was 58.5.
The negative April reading should cause contractors to pause and evaluate backlog, especially since the decrease in the ABI score may possibly be a result of financing concerns, as noted by Kermit Baker, AIA Chief Economist. The next couple month’s scores will provide a better barometer for which way construction spending may go, and will provide your company the information it needs for short and longer term business planning.
To learn more about the most recent ABI score please read the AIA’s May 22nd press release.
Architecture Billings Index Maintains Positive Score in March
The March Architecture Billings Index (ABI) score released by the American Institute of Architects (AIA) on April 23, 2013 reflected another month of increases in design activity with a score of 51.9, however the rate of growth has decelerated. The new projects inquiry index score was 60.1, which also reflected a decrease from the previous month.
Despite the decrease in March, the fact that the score remains positive should be encouraging news to construction contractors, as this may indicate more work to bid on in the future.
To learn more about the most recent ABI score please read the AIA’s April 23rd press release.
Another Month of Growth for the Architecture Billings Index
The American Institute of Architects (AIA) released their latest Architecture Billings Index (ABI) on March 20, 2013. With a score of 54.9 the ABI has shown steady growth for the past several months. The press release noted that this is the strongest growth seen since 2007. The new projects inquiry index also increased over the previous month with a score of 64.8.
The recent trend seen in the ABI index should provide contractors hope in the coming months that there will be more work to bid on with a possible return of more profitable work. Based on how this index works, the 3rd and 4th quarters of 2013 could be a time of growth for contractors.
To learn more about the most recent ABI score please read the AIA’s March 20th press release.
ABI Shows Strongest Reading in Five Years
The AIA reported an increase in the Architecture Billings Index (ABI) score for January. A score of 54.2 reflects fast growth from December’s score of 51.2. In addition, there is strong growth in the new projects inquiry index, resulting in a reading of 63.2. This is up from last month’s new project inquiries index of 57.9.
Kermit Baker, the AIA’s Chief Economist, commented that “a continued reservation by lending institutions to supply financing for construction projects is preventing a more widespread recovery in the industry,” but that Continue reading »
AIA Architecture Billings Index Remains Negative in July
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) maintained a negative score for the month of July, though the rate of decline was not as significant as the months of May and June. The July ABI score was 48.7 which is an improvement when compared to June’s score of 45.9. Based on comments by AIA Chief Economist Kermit Baker, it appears that improvements in construction industry spending will correlate with the improvement of overall economic conditions. The new projects inquiry index increased from 54.4 in June to 56.3 in July. Read the AIA’s full ABI press release here.
AIA Architecture Billings Index Remains Negative in May and June
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) saw a considerable slide in May, which remained consistant into June with scores of 45.8 and 45.9, respectively. According to Kermit Baker, the AIA chief economist, the drop in May demonstrated the ongoing uncertainty in the construction industry that should be signaling alarm bells to members of the industry, however in June he noted that though the weak market conditions exist, not all firms are experiencing negative conditions. Continue reading »
AIA Architecture Billing Index Turns Negative in April
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has turned negative for the first time in 5 months this past April as reported by the AIA. The April score reported was 48.4. Scores below 50.0 indicate a decline in architecture firm billings. The AIA chief economist, Kermit Baker, said that this decline is not surprising given the remaining volatility in the overall economy, as well as an unusually warm winter which may have accelerated billings in earlier months.
A one month decline should not cause anyone to panic, however a continued negative trend would be concerning. Read the AIA press release for full detail of the April ABI scores.
AIA Architecture Billing Index Led By Commercial Construction
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has now seen 4 consecutive months of scores over 50.0. The reported score in February was 51.0, while the new projects inquiry score was 63.4. The AIA chief economist, Kermit Baker, stated that a factor preventing a more accelerated recovery was caution of clients to move forward with new projects, and difficulty in obtaining financing for new projects.
This report could translate into future work for your construction Company assuming your customers are willing to start building, and have the ability to pay for their projects. One important comment to take away from this is that the new projects inquiry is at the highest level since before the recession, which further indicates improving business conditions for the industry. Read the AIA press release for full detail of the February ABI scores.
AIA Architecture Billing Index Continues Positive Trend
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has seen 3 consecutive months of positive scores over 50.0. This may be a result of improving business conditions around the country, however it is noted that there was a similar upturn in late 2010 and early 2011, as pointed out by AIA chief economist Kermit Baker. If your construction company could use some good news the recent trend in the ABI should make you feel cautiously optimistic, as this may indicate potential new work later in 2012.
The Wall Street Journal has taken notice of this trend as seen in a recent article. Also visit the AIA website to view the full ABI press release.
Construction Spending Unexpectedly Increases In August
The roller coaster ride of 2011 continues for the construction industry. Following a 1.1% decrease in July, construction spending saw an unexpected increase in the month of August for nonresidential construction spending of 1.6% compared to the previous month. This is based on the U.S. Census Bureau’s press release. McGraw Hill Construction also reported an 8% increase in construction spending starts versus a 10% decline in July in their most recent report.
The good news was also seen in the employment spectrum according to The Associated General Contractors of America (AGC). AGC stated in their press release that construction employers added 26,000 jobs during the months of August and September. This increase brought the current unemployment level for the industry to 13.3% but AGC cautioned that some of the recent declines in the unemployment rate were a result of construction workers leaving the industry all together.
Based on the statistics that have been released over the past 3 months it is hard to gauge whether the industry has begun to stabilize or not. These mixed economic signals may be frustrating for contractors attempting to prepare budgets or who are considering hiring additional employees for the future. Continue reading »
