Construction + Economy

Continuing its strong rebound, the Architecture Billings Index (ABI) recorded its third consecutive month of positive billings, according to The American Institute of Architects (AIA).

In March 2021, the Architecture Billings Index (ABI) logged its second positive mark since the beginning of the pandemic, according to The American Institute of Architects (AIA).

Continuing the positive momentum of a nearly three-point bump in January, the Architecture Billings Index (ABI) reached its first positive mark since February 2020, according to The American Institute of Architects (AIA).

Total construction starts dropped 4% in January to a seasonally adjusted annual rate of $794.3 billion. Nonresidential building starts were flat in January, while nonbuilding starts dropped 10% and residential starts were 4% lower. From a regional perspective, starts were lower in three of the five regions – the Midwest, South Atlantic, and South Central. Starts rose, however, in the Northeast and West.

A slight improvement in business conditions has led to fewer architecture firms reporting declining billings, according to The American Institute of Architects (AIA).

The Dodge Momentum Index increased 3.1% in January to 139.4 (2000=100) from the revised December reading of 135.2. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. January’s increase marked the highest level in the Momentum Index since the COVID-19 pandemic began.

Total construction starts lost 5% in December, falling to a seasonally adjusted annual rate of $784.3 billion. Nonresidential building starts fell 11% during the month, while nonbuilding starts were 5% lower. Residential starts were essentially flat over the month. Starts were lower in three of the four regions in December; the South Central was the only region to post an increase.

While nonresidential construction activity contracted in 2020 and is projected for another decline in 2021, residential construction was strong last year. Led by a solid, double-digit gain in single-family starts, overall housing starts increased 5.8% to a seasonally adjusted annual rate of 1.67 million units, according to a recent report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

Slowing demand at architecture firms in 2020 is expected to contribute to a projected 5.7 percent decline in construction spending for 2021, according to a new consensus forecast from The American Institute of Architects (AIA).