Architecture Billings Index Declined to 46.6 in November
Washington, DC, December 16, 2022-The pace of decline for design services from architecture firms during November accelerated from October, posting an Architecture Billings Index (ABI) score of 46.6 from 47.7 (any score below 50 indicates a decline in firm billings), according to a new report from The American Institute of Architects (AIA).
The pace of inquiries into new projects slowed, but remained positive with a score of 52.0, however new design contracts remained in negative territory with a score of 46.9.
“Given the slowdown in new project work, many architecture firms will rely on their near record levels of backlogs to support revenue,” said AIA chief economist, Kermit Baker, Hon. AIA, PhD. “Still, firm leaders remain largely optimistic about future business trends. Almost two-thirds of architecture firms project that 2023 will be either a good year or great year for their firm.”
Regional averages were as follows: South (50.5); Midwest (47.6); West (45.8); and Northeast (42.4).
The sector index breakdown was mixed practice (51.5); institutional (47.7); multi-family residential (46.1); and commercial/industrial (44.2).
Related Topics:The American Institute of Architects