Architecture Billings Index - ABI

No, the Architecture Billings Index does not track the number of stories on the tallest building in Billings, Montana. We're guessing that ABI has been holding steady at 5 for a few decades now (nope, we just looked it up: tallest building in Billings is the First Interstate Center and its 20 stories tall).

In the world of finance, the ABI provides a leading indicator of construction activity. It is put out each month by the American Institute of Architects. The index combines survey data related to billings (no, not that Billings again...as in bills sent out) by architecture firms. Basically, a high number of billings suggests that people are hiring a lot of architects.

Since the first step of building something is to have an architect design it, a high level for the ABI suggests the likelihood of strong construction activity down the road. The AIA estimates that the index provides a lead time of about 9 to 12 months, meaning a rise in the ABI is correlated with higher construction activity 9 to 12 months down the road.

The index is used to measure nonresidential construction, or projects that involve something else than places for people to live (like houses or apartment buildings).