
Demand for design services in August 2019 took a markedly downward swing compared to July’s already soft score--except for two areas: the institutional sector of which church is a part and design projects in the Western United States. This news comes as a results of the American Institute of Architect's (AIA's) Architecture Billings Index report.
AIA’s Architecture Billings Index (ABI) overall score of 47.2 in August showed a significant drop in architecture firm billings compared to the July score of 50.1. Yet, while any score below 50 indicates a decrease in billings, any score above 50 notes positive performance.
Of those sectors demonstrating scores below 50, “The sizeable drop in both design billings and new project activity, coming on the heels of six months of disappointing growth in billings, suggests that the design expansion that began in mid-2012 is beginning to face headwinds,” says AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Currently, the weakness is centered at firms specializing in commercial/industrial facilities as well as those located in the Midwest.”
Key ABI highlights for August 2019 include:
- Regional averages: West (51.2); Northeast (49.1); South (48.2); Midwest (46.4)
- Sector index breakdown: institutional (50.6); multi-family residential (50.5); commercial/industrial (46.9); mixed practice (46.3)
- Project inquiries index: 54.5
- Design contracts index: 47.9
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.