After a series of historic lows, the Architecture Billings Index (ABI) was up more than eight points in March. Published by the American Institute of Architects (AIA), Washington, D.C., as a leading economic indicator of construction activity, the ABI reflects the approximate nine-to-twelve-month lag time between architecture billings and construction spending. The AIA reported the March ABI rating was 43.7 points, up from the 35.3 points mark in February. This was the first time since September 2008 that the index was above 40 points, but the score still indicates an overall decline in demand for design services (any score above 50 points indicates an increase in billings). The new projects inquiry score was 56.6 points.
“This news should be viewed with cautious optimism,” said AIA Chief Economist Kermit Baker. “The fact that inquiries for new projects increased is encouraging, but it will likely be a few months before we see an improvement in overall billings. Architects continue to report a diversity of business conditions, but the majority is still seeing weak activity levels.” One architect said in the ABI survey, “Everyone is taking a wait-and-see attitude. No one wants to commit to anything. Although the stimulus package seems to be setting some local projects in motion — school assessments, roads, mostly small projects at the moment.”