August Billings Index Bounces Back

National
Billings (blue) and inquiries (red) for the past 12 months. (The Architect's Newspaper)

Billings (blue) and inquiries (red) for the past 12 months. (The Architect's Newspaper)

They’re back! Positive numbers for the Architecture Billings Index (ABI) jumped up in August to 51.4 from a dismal 45.1 in July where it had been stewing in negative land for months. (Anything over 50 indicates positive growth.) Together with a sharp rise as well in Project Inquiries to 56.9 (up from 53.7), the good news seems cautiously solid. “This turnaround in demand for design services is a surprise,” said AIA Chief Economist Kermit Baker. Regional averages, however, remained below the positive bar across the country indicating that firms generally are still struggling. These numbers predate the next injection of stimulus money—whatever shape it takes—which will be sure to give another jolt. Unless, of course, billings are tracking the roller-coaster antics of the stock market.

“The stock market is doing what the economy is doing which is not moving solidly in one direction, either way,” Baker said by phone. “The stop-start that we have seen over the past two years is going to stay with us. I would love to believe that these latest numbers are the start of a Grand Recovery. And maybe they are. The evidence is just not there yet to be sure.”

Billings by region: Northeast (orange), Midwest (blue), South (red), West (green).

Billings by region: Northeast (orange), Midwest (blue), South (red), West (green).

Billings by sector: Residential (green), commercial/industrial (pink), institutional (gold), mixed-use (purple).

Billings by sector: Residential (green), commercial/industrial (pink), institutional (gold), mixed-use (purple).

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