Business Upturn Becoming More Widespread

 

On the negative side, the billings index for commercial/industrial firms dipped below 50 for the first time since last April. The billings index for institutional firms held steady, and has been slowly trending up for most of the year.
Courtesy of AIA

Trends in billings by construction sector were more mixed. On the positive side, residential architecture firms report a solid increase in billings, with the index for that sector increasing to 54.3, its highest reading since mid-2007, according to Kermit Baker, Hon. AIA Chief Economist.

While the national economic recovery continues, the pace of growth remains disappointing. The gross domestic product grew 2.5 percent in the third quarter when seasonally adjusted and annualized. This is somewhat below the pace of the first half of the year.

Both residential and commercial/industrial firms were more optimistic about business conditions over the coming year. Half of the firms in each group expect revenue increases in 2011, while only one quarter expect declines.

In contrast, almost half of institutional firms are expecting revenue declines over the coming year, with only 38 percent anticipating growth. Regionally, firms in the Northeast and Midwest expect more favorable conditions in the future, with half of the firms in each of these regions looking for growth. Almost half of firms in the West anticipate revenue declines in 2011.

Residential work continues to be additions and alterations. Small commercial tenant fit-ups are increasing, according to a 2-person firm in the Northeast, residential specialization.

– Courtesy of AIA