Though the year kicked off with a decline, April 2016 ABI scores show an increase in demand for design work for the third consecutive month. April’s ABI score was a 50.6. The new projects inquiry index was a 56.9 for the month of April. According to the Kermit Baker, AIA chief economist, the positive momentum of ABI scores “certainly suggest that firms will be reporting growth in billings over the next several months.”
April 2016 ABI Score Highlights:
- Regional averages: South- 52.2, Northeast- 51.5, West- 50.8, Midwest- 50.8
- Multi-family had the highest score at 53.7. Commercial/industrial came in next with a 52.0. Institutional saw a decline with a score of 49.0
- Design contract index- 54.3
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 ABI (Architectural Billing Index) is an economic indicator of construction activity. The score is derived from results of a monthly survey asking AIA firms whether their billings increased, decreased or stayed the same from prior month. Anything about a score of 50 indicates an increase in billings; below a 50 indicates a decline. The score is also a predictor of construction spending with a nine to twelve-month gap between architectural spending and construction spending. ABI news is broken out on a monthly and quarterly basis.
For more information on ABI scores, click here.
Related- March 2016 ABI Scores