Architects’ Billings Index falls at steepest rate in 1.5 years in July


Source: AIA

The Architects’ Billing Index has fallen at its steepest rate in a year and half last month, according to a report released by the American Institute of Architects yesterday.

Following a drop of almost a full point in June, the ABI fell again by more than a point in July. The ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The July ABI score was 45.1 —  the steepest decline in billings since February 2010 —  after a reading of 46.3 the previous month, reflecting a continued decrease in demand for design services. The new projects inquiry index was also down considerably at 53.7 points, from a reading of 58.1in June.

Sign Up for the undefined Newsletter

“Business conditions for architecture firms have turned down sharply,” said Kermit Baker, chief economist at AIA. “Late last year and in the first couple of months of this year there was a sense that we were slowly pulling out of the downturn, but now the concern is that we haven’t yet reached the bottom of the cycle. Current high levels of uncertainly in the economy don’t point to an immediate turnaround.”

The average index for the Northeast was 46.4 and for the South 46.9. — Miranda Neubauer