Architecture Billings Index Posts Gains in June

Architectural firms report that billings for design services increased in June despite higher construction costs for the industry and a shortage of qualified labor. The June Architecture Billings Index, published by the American Institute of Architects, registered 54.2 following a score of 53.0 in May. Billings have been on a generally upward trajectory over the past several months. The new projects inquiry index was 58.6, down from a reading of 62.4 in May, while the new design contracts index decreased from 54.8 to 53.7. Firms reported backlogs averaging 5.9 months.

“So far this year, new activity coming into architecture firms has generally exceeded their ability to complete ongoing projects,” said AIA Chief Economist Kermit Baker. “Now, firms seem to be ramping up enough to manage these growing workloads.”