Business Conditions Remain Tough for Firms in West

 

Monthly declines in both total employment and construction employment have lessened substantially since the beginning of the year. However, there is still no sign of growth on the horizon.
Courtesy of American Institute of Architects

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Scores for AIA Billings Index rose in all regions of the country in August with the exception of the West. The other three regions are reporting some of the highest scores in a year, reflecting a degree of emerging optimism. On the other hand, it looks to be a tougher recovery for firms located in the West. The West was the first region to report scores below 50 when the recession began and conditions continue to weaken there even now as other regions begin to improve. Any score below 50 indicates a downturn from the previous month.

Firms with a commercial/industrial specialization have been reporting increasingly higher scores since mid-spring, as have firms with a residential specialization. Fewer firms in both sectors are now reporting declining billings than they did last winter when their all-time lowest scores were recorded. Business conditions remain weakest at firms with an institutional specialization, with little recovery anticipated in the near future.

– Courtesy of AIA