More architecture firms reported a decline in billings in February, indicating an extension of a recent downturn in design activity according to a new report released from The American Institute of Architects (AIA).
The score for February fell slightly to 48.0 (any score below 50 indicates a decline in firm billings). However, inquiries into new projects continued to improve, as did the value of new design contracts. Both indicators suggest that design work is expected to improve in the coming months.
“The combination of an unsettled economy and high interest rates is causing investors and property owners to take a closer look at their plans for construction projects,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “While this is producing delays for some projects under design, architecture firms are reporting that prospects for future project work remain generally positive.”
Key ABI highlights for February include:
- Regional averages: West (50.4); Midwest (48.8); Northeast (48.4); South (47.3)
- Sector index breakdown: mixed practice (57.0); institutional (46.9); commercial/industrial (45.8); multi-family residential (46.2)
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.