Business Conditions Look Good

The monthly ABI index scores are centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline. The regional and sector data are formulated using a three-month moving average. Courtesy of AIA

Architecture firms with a commercial/industrial specialization experienced their sixth consecutive month of growth in October, while firms with an institutional specialization reported a small expansion, the first for the sector since December 2007.

Construction employment remained relatively flat, and employment in the architectural services sector decreased for the second month in a row in September. However, it is important to note that this data is not seasonally adjusted and is likely a reflection of the slowdown that occurs every year as winter approaches.

This month's special question followed up on the question from last month in its attempt to develop a more accurate indicator of upcoming work at architecture firms. Survey panelists reported that on average 88 percent of their projects (on a dollar basis) have a signed design contract. Firms with a commercial/industrial specialization reported the lowest share of projects with a signed design contract at 82 percent.

Clients are beginning to realize that the current negative business environment is an opportunity to take advantage of lower design/construction/financing costs that may not return again for a long time.

- Courtesy of AIA