New Architectural Billings Index Matches April Low
Washington, DC – Business conditions at architecture firms weakened further in September, with the AIA/Deltek Architecture Billings Index (ABI) dropping to 43.3, the lowest since April. New project inquiries remained flat while design
contract values declined for the 19th consecutive month. The billings index is produced monthly by the American Institute of Architects.
In September, billings declined across all U.S. regions except the Midwest, where they remained flat. Firms in the West experienced the sharpest decline for the fourth consecutive month. By specialization, institutional firms reported the weakest conditions,
while commercial/industrial firms saw continued softening after nearing growth over the summer.
“Unfortunately, business conditions remain relatively weak at architecture firms,” said Kermit Baker, PhD, AIA Chief Economist. “There was some erosion in project backlogs this past quarter, with the greatest slippage coming from firms
with an institutional specialization.”
Key ABI highlights for September include:
• Regional averages: Midwest (49.8); South (47.9); Northeast (43.8); West (40.6)
• Sector index breakdown: multifamily residential (47.2); commercial/industrial
(46.6); institutional (44.3); mixed practice (firms that do not have at least half of their billings in any one other category) (44.0)
• Project inquiries index: 50.1
• Design contracts index: 46.3
The
regional and sector categories are calculated as three-month moving
averages and may not always average out to the national score.
Access resources to help architects successfully navigate an uncertain economy.
About The American Institute Of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. For more information, visit www.aia.org.