The Architecture Billings Index (ABI) fell just below the positive mark in August following increasing levels of demand for design services in six out of the last seven months. According to the American Institute of Architects (AIA), the August score was 49.7, down from 51.5 in the previous month.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lead time between architecture billings and construction spending. August’s score reflects a decrease in design services, as any score above 50 indicates an increase in billings. The new projects inquiry index was 61.8, up sharply from a reading of 57.5 the previous month.
“This is only the second month this year where demand for architectural services has declined and it is only by a fraction of a point,” says AIA chief economist Dr. Kermit Baker. “Given the solid numbers for new design contracts and project inquiries, it doesn’t appear that this is the beginning of a broader downturn in the design and construction industry.”
Regional averages for the August ABI were: South (55.2), Midwest (52.8), West (49.0) and Northeast (44.9). Index breakdown by sector was as follows: mixed practice (51.8), multi-family residential (50.9), commercial/industrial (50.8) and institutional (50.7).