Architecture Billings Index Remains in Negative
January 20, 2010
On the heels of a more than three point drop in November, the American
Institute of Architects (AIA) Architecture Billings Index
(ABI) had a negligible increase of less than one point in December.
AIA reported the December ABI rating was 43.4, up slightly from
42.8 in November. This score indicates a continued decline in demand
for design services (any score above 50 indicates an increase in
billings). The new projects inquiry score was 55.3, down more than
The main impediment to an economic turnaround for the design
and construction industry remains frozen credit markets. We continue
to hear that there are numerous viable projects out there awaiting
financing, says AIA chief economist Kermit Baker, PhD, Hon.
AIA. And the longer this situation persists, the more dire
the news for the architecture profession, which is struggling at
Key December ABI highlights:
- Regional averages: Northeast (48.6), Midwest (46.6), South (43.2),
- Sector index breakdown: multi-family residential (51.0), institutional
(44.2), commercial/industrial (42.7), mixed practice (38.1); and
- Project inquiries index: 55.3.
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