The American Institute of Architects (AIA) Architecture Billings Index is determined based on the results of a monthly survey of U.S. architecture firms. The September index of 60.5 is up from the 55.9 score in August. Any score above 50 indicates an increase in billings at architecture firms. Recent increases in design activity expect to translate into similar increases in construction activity in early 2006. Inquiries for new design projects scored 62.5, indicating more expected future growth in design activity, however the pace for project inquires in September slowed somewhat compared to July and August levels.
Highlights from the September ABI:
• Architecture firms in all regions reported improvement in business conditions, with firms in the South reporting the strongest improvement
• Increases in selected construction commodities and problems with availability of building materials has caused inflation to become a key concern
• Construction outlook for 2006 positive based on favorable economic conditions (low interest rates, moderate overall inflation)
"The findings in the Architecture Billings Index should be encouraging for the nonresidential construction industry, and those business sectors affected by it," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "The positive outlook should be tempered, however, because of the effect that rising energy prices, increased costs for building materials, and the possibility of rising interest rates will have on the overall economy in the months to come."
