ABI Inches Forward in August

Courtesy of American Institute of Architects

AIA's Architecture Billings Index (AIA) score continued its recent upward climb in August, growing by nearly half a point to 48.2, the highest score in four months. Billings at architecture firms are still declining, but are now doing so at a very slow pace. ABI score has increased for each of the last three months and it seems likely that as a profession, firms should begin seeing growth in the near future. Inquiries into new projects remain strong, as they increased for the thirteenth consecutive month in August.

While overall payroll employment declined in August, the private sector continued to expand, adding 67,000 new jobs. In addition, architecture firm employment has grown for two consecutive months, reaching a total of 166,700 jobs in July (the most recent data available). Although this is still 24 percent off the most recent high of 220,500 jobs in July 2008, it is an increase of 2,500 jobs over the most recent low point in March.

Federal Reserve's most recent Beige Book report, released in early September, indicates that economic growth persists, but that the pace has been decelerating recently. Consumer spending is up and the manufacturing sector continues to expand, but home sales have slowed since the expiration of the housing tax credit earlier this year.

This month, Work-on-the-Boards participants said that RFQs and RFPs have picked up significantly over the past two months and more projects seem to be moving into design phases, according to a 220-person firm in the Midwest, institutional specialization.

- Courtesy of AIA