As the summer turns to fall, it’s easy to look back and remember the season that was. There was that outdoor concert, that weekend trip to Montreal, that margarita served in a mason jar, and that time you and your neighbor Karl tried to repave the deck. Hey there, chin up, no need to get so nostalgic just yet, that’s what the winter is for. There is one last way to relive that glorious summer right now. How? Through the Architecture Billings Index (ABI), of course. With the newly-released August-time data it’s like the Autumnal Equinox never even happened at all.
Lather up the sunscreen and throw on those shades because here we go! In August, the ABI posted a 53.0, which is down from July’s 55.8, but it’s not all bad news, because, say it with us, “any score above 50 indicates an increase in billings.” Exactly, very good. A similar story played out with the new projects inquiry index; it dropped from 66.0 in July to 62.6. No reason to get all bent out of shape, things are still looking up. For one, design contracts jumped from 54.9 to 56.9 in August.
“One of the key triggers for accelerating growth at architecture firms is that long-stalled construction projects are starting to come back to life in many areas across the country,” AIA Chief Economist Kermit Baker said in a statement. “Long awaited access to credit from lending institutions and an increasing comfort level in the overall economy has helped revitalize the commercial real estate sector in recent months. Additionally, though, a crucial component to a broader industry-wide recovery is the emerging demand for new projects such as education facilities, government buildings and, in some cases, hospitals.”
Let’s dig into the numbers even further, shall we? By region, the Northeast led the pack at 58.1, followed by the South at 55.1, and then the West at 52.5. The Midwest squeaked over the positive line at 51.0. By sector, multi-family residential pulled a Northeast and posted a 58.1. Mixed practice wasn’t far behind at 57.1, followed by institutional at 54.0. Industrial really played it close in August posting a 50.4. Living on the edge now are we, Industrial?