The American Institute of Architects (AIA) reported Wednesday that the Architecture Billings Index (ABI) pointed to a slower decline in July in design activity at US architecture firms. 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. The AIA reported the July ABI score was 48.7, up considerably from the mark of 45.9 in June. This score reflects a decrease in demand for design services (any score below 50 indicates a decline in billings). The new projects inquiry index was 56.3, up from mark of 54.4 the previous month.
"Even though architecture firm billings nationally were down again in July, the downturn moderated substantially," said AIA Chief Economist, Kermit Baker. "As long as overall economic conditions continue to show improvement, modest declines should shift over to growth in design activity over the coming months."
The ABI score was 52.7 in the South, 46.7 in the Midwest, 45.3 in the West and 44.3 in the Northeast.