Continuing its up-and-down trajectory from the end of 2015, the American Institute of Architects' (AIA) Architectural Billings Index (ABI) for January 2016 dropped once again below 50 - to 49.6 - representing a slight decrease in billings. It also showed a reduction in the Projects Inquiries Index, which fell to 55.3 after its strong showing of 60.2 in December.
"The fundamentals are mostly sound in the nonresidential design and construction market,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “January was a rocky month throughout the economy, with falling oil prices, international economic concerns, and with steep declines in stock market valuations in the U.S. and elsewhere. Some of the fallout of this uncertainty may have affected progress on design projects."
Regional Averages
- West (50.8)
- Northeast (50.4)
- South (50.3)
- Midwest (48.9),
Sector Index Breakdown
- Multi-Family Residential (51.9)
- Commercial / Industrial (50.5)
- Institutional (49.9)
- Mixed Practice (49.0)
Key October ABI Highlights
- Project inquiries index: 55.3
- Design contracts index: 50.9
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. Regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers. Any score above 50 reflects an increase in design services.
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