AIA's Billings Index Shows Improvement from May to June

Washington, DC – The AIA/Deltek Architecture Billings Index® (ABI) score was 47.3 for June. The Billings Index is a monthly survey of business activity among firms who are members of the American Institute of Architects. Although the score improved by nearly three points from May, it remained in negative territory, indicating most firms reported a decline in billings.

Inquiries increased in June after a slight decline in May and the value of newly signed design contracts was just below 50, meaning it was essentially flat, with nearly equal shares of firms reporting decreases and increases. Backlogs also declined slightly in the second quarter, falling to an average of 6.3 months from 6.6 months in the first quarter. The sharpest decline was among small firms with annual billings of less than $250,000, where backlogs fell from an average of 4.9 months to 3.1 months.

“Architecture firms remain mired in one of the longest running downturns in the 30-plus year history of the ABI, which now stretches to 41 months without a majority of firms reporting billings growth,” said AIA Chief Economist, Richard Branch. “The uncertainty over the conflict in Iran along with high interest rates and significant labor shortages will continue to weigh on construction – and architect billings over the next several months.”

Key ABI highlights for June include:

•    Regional averages: South (49.5); West (45.6); Midwest (45.1); Northeast (44.9); 
•    Sector index breakdown: institutional (47.4); commercial/industrial (46.7); multifamily residential (45.6); mixed practice (firms that do not have at least half of their billings in any one other category) (42.7)
•    Project inquiries index: 56.1
•    Design contracts index: 49.8

The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

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.