Architecture Indexes Back to Pre-Recession Levels; Highest Billings Since Jan. '08, Inquiries July '07

Washington, D.C. – October 20, 2010 – "For the first time since January 2008, the Architecture Billings Index (ABI) indicated a growth in design activity in September, increasing for the fourth straight month. 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 American Institute of Architects (AIA) reported the September 2010 (Overall National) ABI score was 50.4, up from a reading of 48.2 the previous month (see chart above). This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was also up sharply, moving from 54.6 to 62.3 – the highest mark since July 2007 (see chart)."

MP:  The Architecture Billings Index and New Projects Inquiry Index are both back to pre-recession levels now, more evidence that a) the economic recovery is real and sustained, and b) chances of a double-dip recession are fading.  The ongoing gains in the ABI in 7 out of the last 8 months (and 10 out of the last 13 months), and the September reading above the benchmark level of 50 signaling expansion, both indicate that we can also expect continued, future improvements in construction activity.