Architectural Billings Index Slipped in August

Washington, DC, September 23, 2015—The Architecture Billings Index (ABI) slipped to 49.1 in August after showing mostly healthy business conditions so far this year, according to the American Institute of Architects.

This is down from a mark of 54.7 in July and reflects a slight decrease in design services (any score above 50 indicates an increase in billings).

The new projects inquiry index was 61.8, down from a reading of 63.7 the previous month.

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.

“Over the past several years, a period of sustained growth in billings has been followed by a temporary step backwards,” said AIA chief economist Kermit Baker, Hon. AIA, PhD. “The fact that project inquiries and new design contracts continue to grow at a healthy pace suggests that this should not be a cause for concern throughout the design and construction industry.”

The regional averages for the August index were as follow: Midwest, 56.1; South, 53.8; West, 50.2; and Northeast, 46.8.

The sector index breakdown was institutional, 53.7; mixed practice, 52.8; commercial/industrial, 49.7; and multi-family residential, 49.5.

The project inquiries index was 61.8, and the design contracts index was 55.3.

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