Architecture Billings Index Unveiled as a Predictive Indicator of Future Construction Activity
Results Indicate Modest Increases in Business, Confidence in Growing
Economy, Concerns over Inflation
WASHINGTON, Oct. 19 /PRNewswire/ -- The American Institute of Architects (AIA) officially introduced the Architecture Billings Index (ABI), which is determined based on the results of a monthly "Work-on-the-Boards" survey of U.S. architecture firms. The survey has been taking place since 1995 and the results have been shared with AIA members and academics, and will now be made widely available in the third week of every month to media covering economic conditions. Billings at architecture firms in September made their largest monthly gain since 1998, generating a score of 60.5 on the ABI (any score above 50 indicates an increase in billings at architecture firms), following a score of 55.9 in August. Recent increases in design activity expect to translate into similar increases in construction activity in early 2006. Inquiries for new design projects scored 62.5, indicating more expected future growth in design activity, however the pace for project inquires in September slowed somewhat compared to July and August levels. Highlights from the September ABI: * Architecture firms in all regions reported improvement in business conditions, with firms in the South reporting the strongest improvement * Increases in selected construction commodities and problems with availability of building materials has caused inflation to become a key concern * Construction outlook for 2006 positive based on favorable economic conditions (low interest rates, moderate overall inflation) "The findings in the Architecture Billings Index should be encouraging for the nonresidential construction industry, and those business sectors affected by it," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "The positive outlook should be tempered, however, because of the effect that rising energy prices, increased costs for building materials, and the possibility of rising interest rates will have on the overall economy in the months to come." About The American Institute of Architects For almost 150 years, members of The American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. AIA members have access to the right people, knowledge, and tools to create better design, and through such resources and access, they help clients and communities make their visions real. http://www.aia.org CONTACT: Scott Frank of the American Institute of Architects, +1-202-626-7467, email@example.com
SOURCE American Institute of Architects
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