Architecture Billings Index Turns Positive after Four Straight Monthly Declines
September 21, 2011

On the heels of a period of weakness in design activity, the American Institute of Architects' (AIA) Architecture Billings Index (ABI) took a sudden upturn in August. As an economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. AIA reported the August ABI score was 51.4, following a very weak score of 45.1 in July. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.9, up sharply from a reading of 53.7 the previous month.

"Based on the poor economic conditions over the last several months, this turnaround in demand for design services is a surprise," says Kermit Baker, PhD, Hon. AIA, AIA chief economist. "Many firms are still struggling, and continue to report that clients are having difficulty getting financing for viable projects, but it's possible we've reached the bottom of the down cycle."

Key August ABI highlights:

  • Regional averages: Midwest (49.0), South (47.4), West (47.4), Northeast (46.5),
  • Sector index breakdown: mixed practice (50.9), institutional (48.5), commercial/industrial (46.0), multi-family residential (44.8)
  • Project inquiries index: 56.9

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