The American Institute of Architects (AIA) reported Wednesday that on the heels of a nearly three point increase, the Architecture Billings Index (ABI) climbed into positive terrain for the first time in five months. The August ABI score was 50.2, up from 48.7 in July. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.2, up from mark of 56.3 the previous month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.
"Until the economy is on firmer ground, there aren't likely to be strong increases in demand for design services," said AIA Chief Economist, Kermit Baker, PhD. "In the meantime, we can expect to see design activity alternate between modest growth and modest decline."
The ABI regional averages indicate a score of 52.2 percent in the South; 51.2 percent in the West; 45.5 percent in the Northeast; and 45.3 percent in the Midwest.