Architects report increase in business

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

After a series of historic lows, the nation’s architects reported that business was up again in March, the second monthly increase in a row. Architectural contracts are a leading indicator of construction activity, with a lag time of about nine months to a year between the awarding of architectural contracts and construction spending.

The American Institute of Architects, the leading trade group for the profession, said Wednesday that its index of ‘work on the boards’ reported by architects was 43.7, up from 35.3 in February. This was the first time since September 2008 that the index was above 40, but the score still indicates an overall decline in demand for design services. The score must go above 50 to indicate an increase in billings.

The March score for inquiries from clients about possibly starting projects, however, was 56.6. ‘This news should be viewed with cautious optimism,’ said Kermit Baker, the institute’s chief economist.

‘The fact that inquiries for new projects increased is encouraging, but it will likely be a few months before we see an improvement in overall billings,’ Baker said. ‘Architects continue to report a diversity of business conditions, but the majority is still seeing weak activity levels.’

-- Roger Vincent