AIA’s monthly Architecture Billings Index fell but remained positive in December, coming in at 52.0, which is a one point increase from November's ABI of 51.0. 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.
Design contracts and new project inquiries also moderated but remained positive in December. New project inquiries posted a score of 66.8, rising 7.4 points from November's score of 59.4. Design contracts came in at 55.8 points, holding steady from November's score. “Since demand for design projects has been healthy over the last year, recruiting architectural staff to keep up with project workloads has been a growing concern for firms,” said AIA chief economist, Kermit Baker, Hon. AIA, in a press release from AIA. "Architecture is one of the few industries where payrolls have already surpassed their pre-pandemic high, so meeting future staffing needs is a challenge that most firms will need to confront.”
The month-to-month changes in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—fell in December. Three out of four regional billing scores lost ground, with one remaining below 50.0. Billings in the Midwest decreased 6.6 points to a score of 51.0, while billings in the West fell 3.4 points to a score of 47.5. Billings in the South increased 2.7 points to a score of 56.4, and billings in the Northeast fell 0.2 point to a score of 45.3.
Three of the sector billings scores dipped below 50.0, and three out of four sectors scores fell from their November values. The commercial/industrial sector decreased 1.3 points to a score of 49.2; the institutional sector fell 2.5 points to a score of 47.6. The multifamily residential score decreased 2.2 points to a score of 49.2, and the mixed practice sector rose 3.7 points to a score of 60.6. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.
