AIA Reports Modest Improvement in Architecture
September 22, 2010
Still not entering into the positive phase, the Architecture Billings
Index (ABI) increased for the third straight month in August. The
American Institute of Architects (AIA) reported the August ABI score
was 48.2, up slightly from a reading of 47.9 the previous month,
reflecting a continued decline in demand for design services. The
new projects inquiry index was also up, moving from 53.1 to 54.6.
"Project cancelations, regardless of when they happen in the
design phase, continue to be the main road block to recovery for
the construction sector," said AIA chief economist Kermit Baker,
PhD, Hon. AIA. "Numerous projects have been put on hold indefinitely
over the last several months with little hope that they will be
resumed. Work that is being done is more likely smaller renovation
projects, as opposed to new buildings."
Key August ABI highlights:
- Regional averages: Northeast (50.9), Midwest (49.2), West (45.8),
- Sector index breakdown: commercial/industrial (50.6), ), multi-family
residential (46.9), institutional (46.0), mixed practice (42.6);
- Project inquiries index: 54.6.
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