Lee Fehrenbacher//October 30, 2012//
After dropping for four straight months over the summer, architectural billings have increased for the second month in a row, reaching the highest point in two years.
The on Monday that its Architectural Billings Index had increased 1.6 points from August to a score of 51.6 in September. The index is an economic indicator of construction activity that reflects the 9-to-12-month lag time between architectural billings and construction spending. Any score above 50 indicates growth, while a score below 50 indicates decline.
Architectural firms in the West had the highest number of all four regions in the nation, with a score of 53.4. This follows nearly five years of declining numbers, according to the report. The South had the second highest score at 51.9. The Northeast and Midwest had declining numbers, with 49.5 and 47.2 respectively.
Within specific sectors, residential showed the most improvement with the highest score in seven years (57.3). The institutional sector had a score of 51 while the commercial/industrial sector lagged behind with a score of 48.4. Commercial buildings, the report stated, are overbuilt in many areas around the nation, and firms specializing in that sector may still see softness in the market until they are filled.
AIA also reported that 44 percent of architectural firms pulled across the nation are looking to hire employees; 73 percent for those with billings greater than $5 million.