X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-A leading economic indicator for the construction industry–AIA’s Architecture Billings Index–has dropped three points last month, deflating cautious hopes that the worst may be over. American Institute of Architects reported the November ABI rating was 42.8, down from 46.1 in October. The new projects inquiry score was 58.5, the same mark as in October.

As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. A score under 50 indicates a continued decline in demand for design services.

A regional breakdown of the ABI, according to the report, which was authored by AIA chief economist Kermit Baker showed the south faring better than the rest of the region with a score of 46.4. In the Northeast, it was 45, Midwest (43.7) and West (41.1). The sector index broke down as follows: institutional (47), multi-family residential (45.8), mixed practice (42.8), commercial/industrial (40.7). The project inquiries index was 58.5.

The recent modest rises in the index came during a very volatile period, an AIA spokesman tells GlobeSt.com. “So while there have been periods of ups and downs the overall index has been in negative territory for some time.”

The AIA is hopeful it will rise again. GSA still has $2 billion of spending from the stimulus bill to allocate, which it must do by the end of the year, he says. “Also the president has specifically called on institutions to start lending particularly to small businesses.” Most architecture firms are small businesses, he notes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.