Firms in all regions reported declining billings, with business conditions remaining softest in the West (39.5) as the region’s billings hit a low for the year. Pictured: San Francisco. Photo courtesy of Unsplash.

For the fourth straight month, the American Institute of Architects (AIA) Architectural Billings Index (ABI) remained below 50, indicating decreasing business conditions. Any score under 50 signifies a decline in billings from the previous month.

The ABI is a leading economic indicator of construction activity, providing an approximately nine- to 12-month glimpse into the future of nonresidential construction spending activity.

Chart courtesy of AIA.

Officials report that November’s ABI hit 45.3, a slight increase from October’s score of 44.8. While the number grew slightly, AIA chief economist Kermit Baker says it is the seventh consecutive month with a decline in billings.

“Over the past three months, the pace of decline has accelerated, with firms in all specializations and all regions of the country reporting weakening business conditions,” says Baker. “However, with signs that credit conditions are beginning to ease, firms are reporting an uptick in inquiries for future projects.”

Firms in all regions reported declining billings, with business conditions remaining softest at firms in the West (39.5) as the region’s billings hit a low for the year. The Northeast scored 44.4, the Midwest scored 49, and the South scored 46.7. The project inquiries index averaged 56.9, and the design contracts index averaged 48.1.

Leave a Reply

Your email address will not be published. Required fields are marked *