The latest Architecture Billings Index issued by the American Institute of Architects shows an increase in new planned projects within the industry during the month of January.
The index, with 50 and above representing gains in billings over the previous month, and anything below that numbing showing losses, stood at 44.9 in January.
While that number is well below the index’s consistent over-50 readings in 2018 and 2019, it is still nevertheless an improvement over the 42.3 recorded in December.
The strongest index numbers were seen in mixed practice firms at 47.9 and firms focusing on residential work at 44.4. Firms with a commercial/industrial base came in at 44.3.
Lower readings were reported with firms doing institutional work, at 39.9, up slightly from a December index showing of 39.7.
At the same time, new project inquiries during January increased for the second month in a row, with an overall reading of 56.8, substantially up from what was recorded in December at 51.7.
Despite the marginally improved numbers, Kermit Baker, chief economist with the AIA, said 2021 has “gotten off to a slow start with firms in all regions of the country and in all specializations” reporting lower billing numbers.
Baker did acknowledge that the looming federal stimulus legislation and stepped-up pace of vaccinations “may begin to accelerate progress in the coming months.”
Regionally, billings in firms located in the South showed the strongest numbers in January at 47.4; followed by firms in the West at 42.8; and the Midwest at 42.2. The lowest index numbers were recorded in the Northeast at 41.9.
January’s overall 44.9 index showing represents an improvement in business prospects for architectural firm over last July, when the index came in at 40.0.
Exactly a year ago, before the onset of the Covid-19 pandemic, the billings index stood at 52.2.
By Garry Boulard
