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Architecture Billings Index Shows Early Signs of Improving Business Conditions04-22-09 | News

Architecture Billings Index Shows Early Signs of Improving Business Conditions

This was the first time since September 2008 that the index was above 40, but the score still indicates an overall decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 56.6.

After a series of historic lows, the Architecture Billings Index (ABI) was up more than eight points in March. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the March ABI rating was 43.7, up from the 35.3 mark in February.

?EUR??,,????'??This news should be viewed with cautious optimism,?EUR??,,????'?? said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. ?EUR??,,????'??The fact that inquiries for new projects increased is encouraging, but it will likely be a few months before we see an improvement in overall billings. Architects continue to report a diversity of business conditions, but the majority is still seeing weak activity levels.?EUR??,,????'??

Regional averages include the South with ABI rating of 43.4, Northeast 41.8, Midwest 37.5 and West 36.1. Sector index breakdown was mixed practice 44.0, institutional 42.9, multi-family residential 39.4, commercial / industrial 35.0. Project inquiries index was 56.6. ?EUR??,,????'??? Courtesy of American Institute of Architects