Improvement
in business conditions tempered by a leveling off in project inquiries.
Exhibiting
a welcome rebound following a five-point dip the month prior, the Architecture
Billings Index (ABI) was up almost six points in July. As a leading
economic indicator of construction activity, the ABI reflects the approximate
nine- to 12-month lag time between architecture billings and construction
spending.
The American Institute of Architects
reported the July ABI rating at 43.1, up noticeably from 37.7 the previous
month. However, this score still indicates a decline in demand for design
services (any score above 50 indicates an increase in billings). The new
projects inquiry score fell to 50.3 from 53.8, but it was the fifth straight
month with a score in above 50.
“It
is always encouraging to see an uptick in our index, but there has been too
much contraction in recent months to get overly optimistic about business
conditions returning to levels they were at two months ago,” said AIA Chief
Economist
Kermit Baker, PhD, Hon. AIA. “In addition to
a very competitive marketplace, architects continue to report that lenders have
still not yet fully opened credit lines and that the stimulus funding has so
far provided limited project activity for the design community overall.”
Key July ABI highlights:
- Regional
averages: South (43.4), West (39.7), Northeast (37.8), Midwest
(36.9)
- Sector index breakdown: mixed practice (42.9),
commercial / industrial (42.9), multi-family residential (40.7), institutional
(37.1)
- Project inquiries index: 50.3
Source:
American Institute
of Architects
