Economy
Architectural Billings Index Remains Positive in June
Written by David Schollaert
July 22, 2021
Demand for design services from U.S. architecture firms continued to increase in June, said the American Institute of Architects. AIA’s Architecture Billings Index reached 57.1 in the month, 1.4 points lower than May but still in growth territory. The billings index has expanded every month since January.
The index for new design contracts declined 4.3 points from the May record high to 58.9. The new projects inquiry index increased to a record high of 71.8, surpassing the previous high of 70.8 in April 2021.
“With the current pace of billings growth near the highest levels ever seen in the history of the index, we’re expecting a sharp upturn in nonresidential building activity later this year and into 2022,” said AIA Chief Economist Kermit Baker. “However, as is often the case when market conditions make a sudden reversal, concerns are growing about architecture firms not being able to find enough workers to meet the higher workloads. Nearly six in 10 firms report that they are having problems filling open architectural staff positions.”
Regional billing readings remained positive in June, although three out of four regional billing scores declined from the month prior: Midwest declined to 62.0, South declined to 57.3 and Northeast declined to 53.2. The West increased to 59.7.
By sector, scores increased for the commercial/industrial sector (61.0) and institutional sector (57.3), while scores declined in the multifamily residential sector (57.9) and the mixed practice sector (56.4).
The Architecture Billings Index is an economic indicator for nonresidential construction activity, with a lead time of approximately 9-12 months. A score above 50 indicates an increase in activity, and a score below 50 a decrease.
Below is a graph showing the history of the AIA Architecture Billings Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
David Schollaert
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