For the eighteenth consecutive month architecture firms reported increasing demand for design services in July, according to a new report today from The American Institute of Architects (AIA).
The AIA Architecture Billings Index (ABI) score for July was 51.0. While this score is down from June’s score of 53.2, it still indicates stable business conditions for architecture firms (any score above 50 indicates an increase in billings from the prior month). Also in July, both the new project inquiries and design contracts indexes moderated from June but remained strong with scores of 56.1 and 52.9 respectively.
“Despite architecture services employment recently surpassing pre-pandemic levels, the ABI score this month reflects the slowest growth since January, and marks the fourth straight month with a lower score than the previous month, indicating a slowing trajectory in billings activity,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “With a variety of economic storm clouds continuing to gather, we are likely looking at a period of slower growth going forward.”
Key ABI highlights for July include:
- Regional averages: South (53.6); Midwest (52.2); West (51.7); Northeast (48.4)
- Sector index breakdown: multi-family residential (52.8); commercial/industrial (52.2); mixed practice (52.1); institutional (49.6)
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Contractors | Oct 2, 2018
Nonresidential spending reaches new high in August
Total nonresidential spending stood at $762.7 billion in August, an increase of 8.4% compared to one year ago.
Contractors | Oct 2, 2018
Katerra adds a Denver-area GC to its growing stable
Bristlecone Construction brings self-performing expertise in concrete and framing.
Architects | Sep 14, 2018
We’ve entered the golden age of brain science. What does it mean for AEC firms?
New research from the SMPS Foundation explores the known principles and most recent research surrounding the human brain and behavioral science. The goal: to discover connections between the science and the AEC business.
Contractors | Sep 5, 2018
Lean, tech, talent training highlight contractor innovations
From 5D estimating tools to interactive punch lists, the nation’s largest construction and construction management firms continue to push technology to gain an edge.
Modular Building | Aug 6, 2018
More contractors are turning to offsite production for speed and quality
Skender launches an advanced manufacturing division. Katerra ups its bet on modular. Prefabrication comes to the rescue on multiple projects.
Architects | Aug 1, 2018
Client experience as competitive advantage for AEC firms
Clients are looking for solutions to their business problems from collaborative advisors. They’ve come to expect a higher level of service and detail than what was provided in the past.
Codes and Standards | Jul 31, 2018
Workers allegedly held in captivity by construction subcontractor in San Jose pay theft case
Contractor pays $250,000 in back wages in Dept. of Labor enforcement action.
Building Team | Jul 30, 2018
Construction tech is the new investment darling for VC funds
In the first half of 2018, venture capital firms invested $1.05 billion in global construction tech startups, setting a record high.
Modular Building | Jul 23, 2018
Offsite construction: Why it’s important for the survival of your firm
The industry is approaching its “heart attack moment,” with so many large projects that are chronically late, over budget, and unprofitable, writes FMI Capital Advisors’ Michael Swistun.
Building Owners | Jul 17, 2018
Are we facing a new era in Foreign Direct Investment?
The construction industry is already feeling the effects of the recent tariffs, not only with higher steel and aluminum prices, but with higher prices on Canadian lumber.
