Construction Economics
Architectural Business Index Holds Steady for July
Architecture firms' billings remained flat in July.
Graphic courtesy of the American Institute of Architects
U.S. architectural firms report that their business generally is holding steady, according to the latest monthly index from the American Institute of Architects and Deltek.
The AIA/Deltek Architectural Billings Index (ABI) for July, released on Aug. 23, showed a score of 50.0. For June, the billings index score was 50.1.
The July index score for design contracts also was 50.0, which was down from the June design contracts score of 52.7.
“This is the third straight month that billings at architectural firms have stabilized,” Kermit Baker, AIA's chief economist, said in a statement.
“New project work has been even stronger over this period," Baker added. "This suggests that design work may finally begin to increase over the coming months, although somewhat modestly.”
Firms that specialize in the commercial/industrial sector reported their most positive billings increase in more than 12 months, compared with year-earlier levels, recording an ABI score of 52.7.
But firms that focus on multifamily residential projects said their billings continue downward. showing a score of 45.4, year over year.
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Looking at regional results, Midwest architectural firms say their billings rose in July, for a score of 51.6. But scores for firms in the Northeast, South and West depict a billings decline.
A score of 50 reflects no change in billings from the previous month or year, depending on the category. A score of more than 50 indicates an increase and a score of less than 50 represents a decrease.
Regarding workforces, 53% of firms responding say they are appropriately staffed; 39% say they are understaffed; and 7.1% report that they are overstaffed.
AIA/Deltek noted that the index is a leading indicator, signaling what nonresidential construction activity could look like about nine to 12 months from now.
