Architecture Firms Report Increasing Demand for Design Services

For the sixth consecutive month, architecture firms have reported increasing demand for design services as reflected in the July Architecture Billings Index (ABI). As an 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 51.9, down from a score of 54.2 in the previous month. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.5, up from a reading of 58.6 the previous month, while the new design contracts index increased from 53.7 to 56.4.

“The July figures show the continuation of healthy trends in the construction sector of our economy,” says AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “In addition to the balanced increases in design billings across all major regions and construction sectors, the gains in new project work coming into architecture firms points to future growth in design and construction activity over coming quarters.”
July ABI highlights:

  • Regional averages: South (53.8), Midwest (53.8), Northeast (53.6), West (50.9)
  • Sector index breakdown: multi-family residential (55.8), commercial / industrial (55.4), institutional (52), mixed practice (48.4)
  • Project inquiries index: 59.5
  • Design contracts index: 56.4

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