Architecture Billings Index - ABI

AAA

DEFINITION of 'Architecture Billings Index - ABI'

A leading economic indicator of demand for commercial and industrial building activity. The ABI is based on responses to the monthly Work-on-the-Boards survey that asks the principals and partners of architecture firms (that are American Institute of Architects members), whether their billing activity for the previous month grew, declined or remained flat. The change in billing activity tells us about the level of demand for design services from architecture firms; in other words, it tells us about the level of interest in constructing new buildings. When the index is above 50, demand is increasing; when it is below 50, demand is falling.

INVESTOPEDIA EXPLAINS 'Architecture Billings Index - ABI'

Commercial and industrial building activity includes the construction of hotels, office buildings, multi-family residential, schools, hospitals and other institutional buildings. It is important because it affects numerous types of businesses, from architecture firms to reprographics companies to contractors. A positive Architecture Billings Index can be a sign of strength or recovery in the broader economy, while a negative ABI can signal weakness or a coming downturn.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  3. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  4. Demand

    An economic principle that describes a consumer's desire and ...
  5. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy ...
Related Articles
  1. Economics

    Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  2. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  3. Economics

    Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.
  4. Active Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  5. Fundamental Analysis

    4 Key Indicators That Move The Markets

    Find out what reports to watch in order to anticipate and react to market movements.
  6. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  7. Economics

    How do debt issues affect governments' abilities to run fiscal deficits?

    Read about whether or not debt issues affect the federal government's ability to run fiscal deficits, and find out what those impacts are.
  8. Fundamental Analysis

    What's the difference between r-squared and adjusted r-squared?

    Learn how R-squared and adjusted R-squared values differ, how they are calculated, the relationship between them and how to use them to make accurate estimates.
  9. Economics

    How Demographics Drive The Economy

    Demographics can have a profound effect on the economy. An aging population coupled with a declining birthrate points to a decline in economic growth.
  10. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center