Architecture Billings Up For Second Straight Month

Architecture billings were positive in December 

 for the second straight month, reports the American Institute of Architects (AIA). Architecture billings are a leading economic indicator of construction activity, with an approximate nine to twelve month lag time between billings and construction spending. The Architecture Billing Index was 52 in December, following the exact same mark in November. This score reflects an overall increase in demand for design services. Any score above 50 indicates an increase in billings. The new projects inquiry index was 64, down just a point from a reading of 65 the previous month.

“We saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it’s too early to be sure that we are in a full recovery mode,” said AIA Chief Economist Kermit Baker. “Nevertheless, this is very good news for the design and construction industry and it’s entirely possible conditions will slowly continue to improve as the year progresses.”

Key Highlights:

• Regional averages: South (54.2), Midwest (53.1), Northeast (52.6), West (45.1)
• Sector index breakdown: multi-family residential (54.3), commercial / industrial (54.1), institutional (51.3), mixed practice (44.5)
• Project inquiries index: 64.0