commentThe Architecture Billings Index pointed to a slower decline in July in design activity at U.S. architecture firms. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending.
The American Institute of Architects reported the July ABI score was 48.7, up considerably from the mark of 45.9 in June. This score reflects a decrease in demand for design services (any score below 50 indicates a decline in billings). The new projects inquiry index was 56.3, up from mark of 54.4 the previous month.
“Even though architecture firm billings nationally were down again in July, the downturn moderated substantially,” said AIA Chief Economist Kermit Baker. “As long as overall economic conditions continue to show improvement, modest declines should shift over to growth in design activity over the coming months.”
Key July ABI highlights:
• Regional averages: South (52.7), Midwest (46.7) West (45.3), Northeast (44.3)
• Sector index breakdown: multifamily (51.4), mixed practice (49.1), commercial/industrial (48.4), institutional (46.6)
• Project inquiries index: 56.3.
Sign in to Comment
To write a comment about this story, please sign in. If this is your first time commenting on this site, you will be required to fill out a brief registration form. Your public username will be the beginning of the email address that you enter into the form (everything before the @ symbol). Other than that, none of the information that you enter will be publically displayed.