The American Institute of Architects monthly Architecture Billings Index posted at 50.4 in March, expanding 2.4 points from February’s score of 48.0 and rising for the first time since September. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
The scores for both project inquiries and design contracts contracted in March. New project inquiries clocked in at 53.1, falling 1.9 from February’s score of 55. Design contracts posted a score of 48.9 in March, falling 2.4 points from February’s score of 51.3.
“In spite of the positive movement in architecture firm billings in March, core concerns remain,” said AIA chief economist, Kermit Baker, Hon. AIA, in a press release from the organization. “Inflation still needs to ease further for interest rates to return to more normal levels, and the banking turmoil still threatens to hold back residential and commercial construction loans.”
The month-to-month changes in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—remained stagnant in March, with just one score rising above 50.0. Billings in the Midwest rose 2.6 points to a score of 51.4, while billings in the West declined 3.2 points to a score of 47.2. Billings in the South increased 0.1 point to a score of 47.4, and billings in the Northeast improved 0.7 point to a score of 49.1.
As in February, scores for March’s sector billings largely remained below 50.0, with the exception of one sector. The commercial/industrial sector rose 3.9 points to a score of 49.7; the institutional sector increased 1.9 points to a score of 48.8. The multifamily residential score fell 2.0 points to a score of 44.2, and the mixed practice sector fell 3.1 points to a score of 53.9. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.
Read more business news: Decline Slows for December Billings | Billings Slow Again in November | Moderated September billings reflect pressures in housing market
