Architecture Billings Index Hits 19th Month of Decline as August Scores Drop Further

According to the latest data from the American Institute of Architects (AIA) Architectural Billings Index (ABI), August marked the 19th consecutive month of declining billings for architecture firms. AIA officials say the decline increased in August, as the ABI recorded a score of 45.7, falling from 48.2 in July. Any score below 50 indicates a decrease in billings.

The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-12-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.

“Unfortunately, even the impending interest rate cuts didn’t move the needle on project inquiries or new design contracts at architecture firms,” says AIA chief economist Kermit Baker. “Hopefully, once the trajectory of further cuts gets clarified, delayed projects will restart, and new projects will gather momentum.”

According to AIA data, each region failed to surpass the 50 mark. The regional averages were:

• Northeast (48.2);

• South (46.8);

• Midwest (46.6); and

• West (45.7).

The institutional sector scored 48.6, the commercial/industrial sector hit 46.6, and the multifamily residential sector recorded a reading of 44.0. The project inquiries index was 52.4, and the design contracts index was 47.3.