The American Institute of Architects (AIA) reported a July Architecture Billings Index (ABI) score of 55.8, the fourth consecutive month of a score higher than 50, indicating an expansion in billings. The index is up noticeably from a mark of 53.5 in June, and is now at its highest level since 2007.

According to the latest ABI data, released August 20, the last three months have shown steadily increasing demand for design services. The new projects inquiry index was 66.0, following a score of 66.4 the previous month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead-time between architecture billings and construction spending.

The AIA has added a new indicator to measure the trends in new design contracts at architecture firms, which provides a strong signal of the direction of future architecture billings; the design contracts indicator scored 54.9 in July.

"Business conditions for the design and construction marketplace, and those industries associated with it, appear to be well-positioned for continued growth in the coming months," said AIA chief economist Kermit Baker. "The key to a more widespread boost in design activity continues to be the institutional sector which is starting to exhibit signs of life after languishing for the better part of the last five-plus years."

All four regional averages reported positive scores in July. The score for the Northeast was 55.5; the South reached a score of 55.1; the Midwest scored 54.1; and the West reached a score of 53.5.

By industry sector, the index score for mixed practice firms was 61.0; multi-family residential billings reached a score of 56.5; institutional firms scored 53.3; and commercial/industrial firms scored 51.2.