Architecture Billings Index Shows No Significant Improvement in Business Conditions

 

According to AIA Chief Economist Kermit Baker, PhD, prospective clients are casting a wider net causing numerous firms to bid for the same project. That?EUR??,,????'???s why the high level of inquiries is not necessarily translating into additional billings for project work at many firms. ?EUR??,,????'??? Courtesy of Interstudio

Inquiries for new projects remain favorable, but not translating into work. There has been a recent moderation in the downturn in design services billings, but the Architecture Billings Index (ABI) reveals that an economic recovery has stalled. 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 ABI rating was 42.9, nearly identical to the 42.8 mark in April. This 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 55.2, the third straight month with a score in the mid-50?EUR??,,????'???s. Regional averages: Northeast (48.3), Midwest (41.5), South (41.3), West (39.4). ?EUR??,,????'??? Courtesy of American Institute of Architects