Architectural Billings Start the Year Strong
Architecture firm billings increased for the fifth consecutive month in January, with about the same share of firms reporting an increase in billings as in December, according to the Architectural Billings Index, compiled by the American Institute of Architects. Business conditions continue to recover from the soft patch they experienced in the spring and summer of 2019, and firms are becoming more optimistic about future work. In addition, the value of new design contracts was particularly strong in January, as clients began to kick off new projects for the year.
Business conditions improved in all regions of the country in January except for the Northeast. Architecture firms in the Northeast are experiencing another protracted period of declining firm billings, as they have off and on for the last several years, and they have not seen any growth in billings in a year. On the other hand, business conditions remain particularly robust at firms located in the South, and are strengthening in the West and Midwest as well. In addition, firms of all specializations reported billings growth for the second month in a row in January.