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Leading Indicators, Still Lagging

By: Myles, March 18th, 2009

The Architecture Billings Index, which is compiled from a monthly survey of architecture firms around the U.S., was up a modest two (2) points in February 2009,  but down six (6) points from a year earlier, pointing to a continued lack in demand for design services.

The February 2009 rating was 35.3, up from the historically low mark of 33.3 in January 2009. Scores above 50 indicate increases in billings while lower numbers show declining workloads.

Since the index reflects an approximate nine- to 12-month lag between architecture billings and construction spending, it is considered a leading economic indicator of construction activity.

  • The new projects inquiry score was 49.5 in February 2009.
  • Regionally, ratings totaled 36.4 for the West, 35.5 for the South, 35.0 for the Midwest, and 32.3 for the Northeast.

The descending order of popular project types are as follows:

  • mixed practice (40.1),
  • institutional (36.8),
  • multi-family residential (33.3), and
  • commercial / industrial (32.0).

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