Business conditions remained stalled at architecture firms during August as demand for design services continued to decline, according to a new report from the American Institute of Architects (AIA).
The pace of decline during August remained at about the same level as in July and June, posting an Architecture Billings Index (ABI) score of 40.0 (any score below 50 indicates a decline in firm billings). Inquiries into new projects during August grew for the first time since February, and the value of new design contracts increased to a score of 46.0. As a result, fewer firms reported a decline in August, despite the fact that they remained negative overall.
“Unfortunately, since the start of the COVID-19 pandemic, many architecture firms are finding fewer inquiries that convert to billable projects,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While fewer firms reported declining billings in August than during the early months of the COVID-19 pandemic, the fact that the score has been unchanged for the last three months shows that the recovery from this downturn is not progressing at the pace we had hoped to see.”
Key ABI figures for August include:
- Regional averages: Midwest (41.7); South (41.6); West (41.3); Northeast (33.9)
- Sector index breakdown: multi-family residential (49.4); mixed practice (41.9); institutional (40.2); commercial/industrial (35.5)
- Project inquiries index: 51.6
- Design contracts index: 46.0
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Visit AIA’s website for more ABI information.
Related Stories
Market Data | Jun 1, 2020
Nonresidential construction spending falls in April
Of the 16 subcategories, 13 were down on a monthly basis.
Market Data | Jun 1, 2020
7 must reads for the AEC industry today: June 1, 2020
Energy storage as an amenity and an entry-point for wellness screening everywhere.
Market Data | May 29, 2020
House-passed bill making needed improvements to paycheck protection program will allow construction firms to save more jobs
Construction official urges senate and White House to quickly pass and sign into law the Paycheck Protection Program Flexibility Act.
Market Data | May 29, 2020
7 must reads for the AEC industry today: May 29, 2020
Using lighting IoT data to inform a safer office reentry strategy and Ghafari joins forces with Eview 360.
Market Data | May 27, 2020
5 must reads for the AEC industry today: May 28, 2020
Biophilic design on the High Line and the office market could be a COVID-19 casualty.
Market Data | May 27, 2020
6 must reads for the AEC industry today: May 27, 2020
AIA's COTE Top Ten Awards and OSHA now requires employers to track COVID-19 cases.
Market Data | May 26, 2020
6 must reads for the AEC industry today: May 26, 2020
Apple's new Austin hotel and is CLT really a green solution?
Market Data | May 21, 2020
7 must reads for the AEC industry today: May 21, 2020
'Creepy' tech invades post-pandemic offices, and meet the new darling of commercial real estate.
Market Data | May 20, 2020
6 must reads for the AEC industry today: May 20, 2020
A wave 'inside' a South Korean building and architecture billings continues historic contraction.
Market Data | May 20, 2020
Architecture billings continue historic contraction
AIA’s Architecture Billings Index (ABI) score of 29.5 for April reflects a decrease in design services provided by U.S. architecture firms.
