August marked the nineteenth consecutive month of declining billings for architecture firms, according to the latest data from the AIA/Deltek Architecture Billings Index (ABI). The pace of decline during August accelerated, posting an ABI score of 45.7, a decrease from 48.2 in July.
“Unfortunately, even the impending interest rate cuts didn’t move the needle on project inquiries or new design contracts at architecture firms,” said Kermit Baker, PhD, AIA Chief Economist. “Hopefully, once the trajectory of further cuts gets clarified, delayed projects will restart, and new projects will gather momentum.”
Key ABI highlights for August include:
• Regional averages: Northeast (48.2); South (46.8); Midwest (46.6); West (45.7)
• Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (48.6); institutional (47.4); commercial/industrial (46.6); multifamily residential (44.0)
• Project inquiries index: 52.4
• Design contracts index: 47.3
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
Visit AIA’s website for detailed information about this, and past billing index reports.