Economy

AIA Billings Index at 7 Year High

Written by Brett Linton


The latest Architecture Billings Index (ABI) score was released on Wednesday morning, reporting that the latest index was the highest since July 2007. The ABI score for July was 55.8, a jump up from June’s score of 53.5. Note that the index is centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline.

“Business conditions for the design and construction marketplace, and those industries associated with it, appear to be well-positioned for continued growth in the coming months,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “The key to a more widespread boost in design activity continues to be the institutional sector which is starting to exhibit signs of life after languishing for the better part of the last five-plus years.”

The Project Inquiries Index was 66.0 in July, a slight decline from 66.4 the previous month.

Below is the press release from the American Institute of Architects:

All construction sectors and geographic regions showing robust demand

Washington, D.C. – August 20, 2014The last three months have shown steadily increasing demand for design services and the Architecture Billings Index (ABI) is now at its highest level since 2007. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI score was 55.8, up noticeably from a mark of 53.5 in June. This score reflects an increase in design activity (any score above 50 indicates an increase in billings). The new projects inquiry index was 66.0, following a very strong mark of 66.4 the previous month.

The AIA has added a new indicator measuring the trends in new design contracts at architecture firms that can provide a strong signal of the direction of future architecture billings. The score for design contracts in July was 54.9….

To read the full press release from The American Institute of Architects, visit their website.

Brett Linton

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