On the heels of a period of weakness in design activity, the Architecture Billings Index (ABI) took a sudden upturn in August. A leading economic indicator of construction activity, the ABI reflects the approximate 9-12 month lag time between architecture billings and construction spending.

The American Institute of Architects (AIA) reported the August ABI score was 51.4, following a very weak score of 45.1 in July. This score reflects an increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.9, up sharply from a reading of 53.7 the previous month.

“Based on the poor economic conditions over the last several months, this turnaround in demand for design services is a surprise,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “Many firms are still struggling, and continue to report that clients are having difficulty getting financing for viable projects, but it’s possible we’ve reached the bottom of the down cycle.”

Key highlights include:

• Regional averages: Midwest (49.0), South (47.4), West (47.4), Northeast (46.5),

• Sector index breakdown: mixed practice (50.9), institutional (48.5), commercial / industrial (46.0), multi-family residential (44.8)

• The regional and sector breakdowns are calculated as a 3-month moving average, whereas the index and inquiries are raw numbers.