Slow Improvement at Architecture Firms

 

The Architecture Billings Index was 50.5 in March, indicating that design billings at U.S architecture firms increased slightly over February levels once seasonal variation was factored in.
Courtesy of AIA

U.S. architecture firms reported that business conditions improved very modestly in March, according to Kermit Baker, Hon. AIA Chief Economist. This was the fifth straight month that billings either held their own or increased.

It was also the third straight month that activity has shown only marginal movement. However, inquiries for new design projects remain strong, as do newly signed design contracts, so it appears as though this emerging recovery in design activity can be sustained.

Business conditions have improved only marginally since the beginning of the year, with ABI scores just at or slightly above the 50 level through the first three months of the year.

Economic indicators in recent months have shown signs of slow but steady growth. Business confidence has been improving. The Conference Board’s CEO Business Confidence index was 67 in the first quarter (any score above 50 indicates a positive outlook), making it the highest reading since early 2004.

Consumers are somewhat less thrilled with the state of the economy, with the University of Michigan’s Consumer Sentiment Index hovering around levels seen in 2009 and 2010.

According to a small firm in the South, the economy is still tenuous. With a governor focused on cutting billions from the state budget, governmental work is not even an option.

– Courtesy of AIA