Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-The American Institute of Architect’ latest Architecture Billings Index suggests are rebound may be underway. The Index rose almost six points in July, reaching 43.1, from 37.7 the previous month. A leading economic indicator of construction activity, the ABI is a measure of the approximate nine to 12 month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.

The index dropped unexpectedly by 5 points in June to the dismay of industry watchers, AIA Chief Economist Kermit Baker tells GlobeSt.com. “We don’t know why but it looks like that was a one-month blip.” The current findings, he says, suggest the construction industry is the midst of a slow recovery.

The stimulus is indeed having an impact–albeit a small one, Baker also says. Three months ago AIA asked firms if they had received work due to the stimulus: 10% said they had, while another 15% said they had received inquires related to it. This month those numbers are 15% and 20%, respectively. “Firms that are getting projects, though, are saying it is a small share of their overall revenue–typically under 10%,” Baker says. “In this market, firms will take anything, but the stimulus is only a small source of relief in the face of much more serious weakness.”

Other highlights from the July Index: the South’s regional average was 43.4; the West 39.7; Northeast 37.8; Midwest, 36.9. Mixed practice sector received a score of 42.9; commercial / industrial, 42.9, multi-family residential, 40.7; institutional, 37.1. The project inquiries index was 50.3.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.