Billings Remain Soft for AIA Member Firms in July

Washington, DC – The AIA/Deltek Architecture Billings Index® (ABI) score for July was 46.6, signaling a modest decline from June. The Billings Index is a monthly gauge of business activity among firms who are members of the American Institute of Architects.

The ongoing slump in business conditions has now stretched to nearly three and a half years, the longest in the ABI’s history. Clients continue to show interest, as inquiries for new projects rose again in July, though more slowly than in June. At the same time, the value of newly signed design contracts fell further after coming close to growth the previous month.

Business conditions remained soft at architecture firms in all four regions of the country in July. Firms in the Northeast reported the weakest conditions for the second straight month. The three other regions saw the pace of decline ease slightly. Billings fell across every specialization. Firms with multifamily residential and institutional specializations posted slight growth earlier this year but have since seen conditions soften. Firms with a commercial and industrial specialization have not reported a rise in billings since July four years ago.

“Macroeconomic uncertainty continues to weigh on the built environment,” said AIA Chief Economist Richard Branch. “High oil prices are putting upward pressure on inflation and may lead to even higher rates in the back half of the year. This will put additional pressure on developers and may lead to a further weakening in billings.”

Key ABI highlights for July include:

•    Regional averages: South (48.7); West (47.8); Midwest (46.7); Northeast (44.8); 
•    Sector index breakdown: multifamily residential (48.4); institutional (47.4); commercial/industrial (46.7); mixed practice (firms that do not have at least half of their billings in any one other category) (43.2)
•    Project inquiries index: 52.6
•    Design contracts index: 47.2

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.