AIA/Deltek Architecture Billings Index Sees Softening Business Conditions in August

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["b"],["i"],["a",["href","https:\/\/www.aia.org\/resources\/10046-architecture-billings-index-abi"]],["a",["href","https:\/\/www.deltek.com\/en\/architecture-and-engineering"]]],"sections":[[1,"p",[[0,[],0,"WASHINGTON \u2013 September 20, 2023 \u2013 The AIA\/Deltek\nArchitecture Billings Index (ABI) eased modestly in August, with a score of\n48.1, marking the eleventh consecutive month of essentially flat billings at\narchitecture firms. Any score below 50.0 indicates decreasing business\nconditions. This follows a period of robust growth in 2021 and 2022. While\ninquiries into new projects remained relatively strong in August, the value of\nnewly signed design contracts declined for the first time since April,\nindicating that fewer clients signed contracts for new projects than in the\nprior three months."]]],[1,"p",[[0,[],0," \u201cBusiness\nconditions at architecture firms continue to be sluggish,\u201d said "],[0,[0],1,"Kermit\nBaker"],[0,[],0,", PhD, AIA Chief Economist. \u201cNew project work coming into architecture\nfirms as well ongoing project activity remain stalled in a relatively narrow range\nand exhibit very little month-to-month variation. Through this pause has taken\npressure off tight staffing conditions across the profession, there is\nconsiderable uncertainty over the direction of future activity. .\u201d "]]],[1,"p",[[0,[],0,"Business conditions also remained soft at firms with\na multifamily residential specialization and declined modestly at firms with an\ninstitutional specialization. However, firms with a commercial\/industrial\nspecialization reported billings growth for the third month in a row in August."]]],[1,"p",[[0,[],0,"The ABI score is a leading economic indicator of\nconstruction activity, providing an approximately nine-to-twelve-month glimpse\ninto the future of nonresidential construction spending activity. The score is\nderived from a monthly survey of architecture firms that measures the change in\nthe number of services provided to clients."]]],[1,"p",[[0,[0],1,"Key\nABI highlights for July include:"]]],[1,"p",[[0,[],0,"\u00b7 \nRegional\naverages: Northeast (50.6); South (49.9); Midwest (48.1); West (45.8)"]]],[1,"p",[[0,[],0,"\u00b7 Sector index breakdown:\ncommercial\/industrial (51.5); institutional (49.4); mixed practice (firms that\ndo not have at least half of their billings in any one other category) (46.9); multifamily\nresidential (44.1)"]]],[1,"p",[[0,[],0,"\u00b7 Project\ninquiries index: 54.8"]]],[1,"p",[[0,[],0,"\u00b7 Design\ncontracts index: 47.9"]]],[1,"p",[[0,[1],1,"The regional and sector categories\nare calculated as three-month moving averages and may not always average out to\nthe national score."]]],[1,"p",[[0,[],0,"Visit "],[0,[2],1,"AIA\u2019s website"],[0,[],0," for detailed information about this, and\npast billing index reports."]]],[1,"p",[[0,[0],1,"About AIA"]]],[1,"p",[[0,[],0,"Founded in 1857, AIA consistently works\nto create more valuable, healthy, secure, and sustainable buildings,\nneighborhoods, and communities. Through more than 200 international, state, and\nlocal chapters, AIA advocates for public policies that promote economic\nvitality and public well-being."]]],[1,"p",[[0,[],0,"AIA\nprovides members with tools and resources to assist them in their careers and\nbusiness as well as engaging civic and government leaders and the public to\nfind solutions to pressing issues facing our communities, institutions, nation,\nand world. Members adhere to a code of ethics and conduct to ensure the highest\nprofessional standards."]]],[1,"p",[[0,[0],1,"About\nDeltek"]]],[1,"p",[[0,[],0,"Better\nsoftware means better projects. Deltek is the leading global provider of\nenterprise software and information solutions for project-based businesses and\nthe home of AIA MasterSpec\u00ae. More than 30,000 organizations, including 12,000\nArchitecture \u0026 Engineering firms, rely on Deltek for superior levels of\nproject intelligence, management, and collaboration. Our industry-focused\nexpertise powers project success for A\u0026E firms of all sizes by helping them\nachieve performance that maximizes productivity and revenue. "],[0,[3],1,"Learn more at Deltek."]]]]}