For the sixth consecutive month, architecture firms reported an increasing demand for design services as reflected in the July Architecture Billings Index (ABI), produced by the American Institute of Architect’s Economic and Market Research Group. The ABI reflects the approximate nine- to twelve-month lead time between architecture billings and construction spending.
AIA reported the July ABI score was 51.9, down from a score of 54.2 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.5, up from a reading of 58.6 the previous month, while the new design contracts index increased from 53.7 to 56.4.
“The July figures show the continuation of healthy trends in the construction sector of our economy,” said AIA chief economist, Kermit Baker, Hon. AIA, PhD. “In addition to the balanced increases in design billings across all major regions and construction sectors, the strong gains in new project work coming into architecture firms points to future growth in design and construction activity over coming quarters.”
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
You can download the July ABI and past ABIs here.