AIA’s monthly Architecture Billings Index (ABI) for April came in at a score of 50.5. This is a 2.7-point increase from last month’s score of 47.8, which had marked the end of a 25-month run of positive billings. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
“In contrast to 2018, conditions throughout the construction sector recently have become more unsettled,” AIA chief economist Kermit Baker, Hon. AIA, said in a press release. “Though we may not be at a critical inflection point, the next several months of billing data will be indicative of the health of the industry going into 2020.”
In April, design contracts posted a score of 52.1, a 1.3-point increase from March’s score of 50.8—a sign of positive momentum.
While the scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—increased in three of the four regions in April, only region posted a score above the threshold of 50 following the decline in March. The billings score for the South fell 2.6 points to a score of 51.6. Meanwhile, design services increased by 1.8 points to a score of 49 in the West; by 0.6 points to a score of 49.3 in the Midwest; and by 1.6 points to a score of 45.1 in the Northeast.
In April, the billings scores fell in two of the four individual industry sectors. The commercial/industrial sector’s score decreased 0.4 point to a score of 46.6, and the multifamily residential score decreased by 0.3 point to a score of 47.4. The institutional sector score rose by 0.3 point to a score of 49.2, while the mixed practice sector increased by 0.1 point to a score of 53.2. (Sector billings scores are also calculated as three-month moving averages.)
