AIA’s monthly Architecture Billings Index for November came in at a score of 51.9, which is a 0.1-point decrease from October’s score of 52. 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.
“The uncertainty surrounding the overall health of the economy is leading developers to proceed with more caution on new projects,” said AIA chief economist, Kermit Baker, Hon. AIA, in a press release. “We are at a point where there is a potential for an upside but also a potential for things to get worse.” In November, design contracts remained constant with a score of 52.9.
The scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—rose in two of four regions in October with three of four regions reporting scores above the threshhold of 50. Billings in the Midwest rose 1.2 points to a score of 51.1 while billings in the Northeast rose 0.3 points to a score of 47.5. Billings in the West remaining unchanged for a third consecutive month at 51.3 while billings in the South fell 1 point to a score of 54.5.
Billings scores rose in two of four individual industry sectors, but all remained above the threshold of 50. The commercial/industrial sector and the institutional sector increased by 3.6 and 0.2 points, respectively, to scores of 52.9 and 50.1. The multifamily residential score fell by 2.5 points to a score of 51.5. The mixed practice sector fell by 3 points to 52.2. (Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.)
