The Architecture Billing Index, which gives builders a sense of nonresidential construction work nine months to a year out, continued its 20th straight month of billing declines in September, the American Institute announced of Architects and software firm Deltek on October 23.
The ABI remained at 45.7, the same score as in August. An ABI of 50 represents no change in turnover from the previous month, while a score above would indicate an increase and a score below 50 shows a decline. AIA bases the ABI on monthly surveys of its member companies.
“Despite the Federal Reserve’s recent rate cuts, many customers remain on the sidelines with respect to planned projects,” Kermit Baker, AIA’s chief economist, said in a statement. “And while new project opportunities are also emerging, clients are cautious about which ones to pursue.”
Still, Baker also noted that architectural firms reported delays averaging 6.4 months, which is above pre-pandemic levels. This is “an indication that there is work in progress,” he said.
More than a third of architects surveyed reported seeing an increase in reconstruction projects over the past few years. The most common types of retrofit design work were building interior retrofits, adaptive reuse, tenant fit-out, building system upgrades, and building envelope upgrades.
Invoicing remained weak across regions. The West scored the lowest at 42.6, while the South was almost flat at 49.5.
By sector, architects specializing in multi-family housing generally recorded the largest declines, with a score of 41.7. Firms doing institutional work were the least weak with a score of 48.5, while commercial and industrial firms scored 44.2.
