Architecture Billing Index

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Juhee Porwal

November 09, 2020 23:11

Hey guys,

Can someone help me understand the concept of the Architecture billing index?

I will like to know about at a little more. I have looked through this website. 

https://www.investopedia.com/terms/a/architecture-billings-index.asp

All suggestions are welcomed,

Thank you

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  mermann November 10, 2020 11:32

  The architecture billings index (ABI) is a running monthly number: an economic indicator for construction activity. A number more than 50 means the financial outlook improved over last month; a number below 50 means the financial outlook declined relative to last month. For example, an ABI of 48 means that, in aggregate, the financial future outlook for architects ticked down last month by some very small amount.There are separate ABI numbers for billings, new design contracts, and inquiries. . . for residential, industrial, public, and commercial sectors. . . and for the Midwest, Northeast, South and West regions of the US. The ABI has successfully predicted the last two recessions 11 months before each one started.

  To see the ABI right now, go here and scroll down a bit. To see it graphically over the last five years, go here and scroll down a bit (note the Covid plunge in 2020)--Michael Ermann, Amber Book

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  aagangchen November 10, 2020 17:43

  Very good information.

  Gang Chen, Author, Architect, LEED AP BD+C (GreenExamEducation.com)

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