AIA Billings Index Remains Positive

The American Institute of Architects (AIA) released their Architecture Billings Index (ABI) score for the month of August on Wednesday this week, reporting that the latest index declined slightly after reaching last month’s seven-year high. The ABI score for August was 53.0, down 2.8 points from July’s score of 55.8. Note that the index is centered around 50, with scores above 50 indicating an aggregate increase in billings, and scores below 50 indicating a decline.

“One of the key triggers for accelerating growth at architecture firms is that long-stalled construction projects are starting to come back to life in many areas across the country,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “Long awaited access to credit from lending institutions and an increasing comfort level in the overall economy has helped revitalize the commercial real estate sector in recent months. Additionally, though, a crucial component to a broader industry-wide recovery is the emerging demand for new projects such as education facilities, government buildings and, in some cases, hospitals.”