07/24/2009

Architecture Billings Index Takes Turn for the Worse

 

The Architecture Billings Index (ABI), which reflects the approximate 9- to 12-month lag time between architecture billings and construction spending, and is a leading economic indicator of construction activity, plunged nearly 5 points in June, despite showing signs of stabilization over the last 3 months.

The American Institute of Architects (AIA) reported that the June ABI rating was 37.7, a significant decrease from May’s rating of 42.9. This score indicates a sharp decline in demand for design services; however, the new projects inquiry score was 53.8, the fourth straight month with a score in the mid-50s. Any score above 50 indicates an increase in billings.

Additional highlights from the June ABI showed that the regional average for the Northeast was 42.8; for the South, 40.5; for the West, 39.9; and for the Midwest, 36.2. Additionally, the rating for mixed practice was 43.5; multi-family residential, 42.7; commercial/industrial, 39.5; and institutional, 37.0.

“It appears as though we may have not yet reached the bottom of this construction downturn,” says Kermit Baker, chief economist at AIA. “Architecture firms are struggling and concerned that construction market conditions will not even improve as soon as next year. There has also been little movement in terms of stimulus funding allocated for design projects having the desired impact of leading to new work.”

 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com

 
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