The American Institute of Architects' Architecture Billings Index held steady at a reading of 52.0 in December, still indicating positive growth. The ABI is a diffusion index, with any reading below 50 representing a decline in billings and reading above 50 representing growth in billings. So, the December index reflects modest growth in demand for design services.
Also in December, the new projects inquiry index fell to 64.0 from 65.0 in November.
"We saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it's too early to be sure that we are in a full recovery mode," said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. "Nevertheless, this is very good news for the design and construction industry and it's entirely possible conditions will slowly continue to improve as the year progresses."
Key December ABI Highlights
Regional averages: South (54.2), Midwest (53.1), Northeast (52.6), West (45.1)
Sector index breakdown: multi-family residential (54.3), commercial / industrial (54.1),
institutional (51.3), mixed practice (44.5)
Project inquiries index: 64.0