The nation’s architectural firms endured their first overall decline in billings in nearly two years, according to a survey just released by the American Institute of Architects.
According to the association’s Architecture Billings Index, the overall score for billings in October was down to 47.7, with any score below 50 representing a decline in firm billings for the month.
By contrast, the overall score for billings one year ago was 54.3, with scores for new project inquiries and design contracts coming in at 62.9 and 58.0 respectively.
Inquiries into new projects, meanwhile, remained strong with a score of 52.3, while the value of new design contracts saw a decline to 48.6.
Said Kermit Baker, chief economist for the AIA, of the October numbers: “Economic headwinds have been steadily mounting, and finally led to weakening demand for new projects.”
The index results were remarkably uniform across the country, with the Northeast posting a 50.3 reading, the Midwest at 50.8, and the South at 50.6.
The lowest reading was recorded by firms based in the West at 49.6.
The strongest sector results were seen in institutional projects at 54.3 and in mixed practices at 50.8. The multi-family sector lagged at 46.1, with commercial and industrial work bringing up the rear at 45.9.
Despite the lower October numbers, Baker, in a statement, pointed out that “Firm backlogs are healthy and will hopefully provide healthy levels of design activity against fewer new projects entering the pipelines should this weakness persist.”
By Garry Boulard
