Drop in architectural billings index sign of softening in nonresidential billings
Business Record Staff May 8, 2024 | 10:02 am
1 min read time
192 wordsAll Latest News, Real Estate and DevelopmentThe continued effects of inflation, supply chain issues and other economic challenges softened architectural billings in the Midwest in April, according to the AIA/Deltek Architecture Billings Index. The index, released April 24, showed the index score for the Midwest was 45.2, down from 50.8 in February. Jessica Reinert, the AIA Iowa executive director, said the “discouragement of new project activity has seeped into the Midwest,” and that prolonged high interest rates and elevated construction costs were factors for the April decline. “Recent word from Iowa architecture firms has not indicated that a slowdown is taking place in Iowa, but Iowa firms are keeping a close eye and bracing themselves for what may be ahead in market fluctuations across the state and Midwest,” she said in a news release. The index is a leading economic indicator of construction activity and forecasts nine to 12 months into the future of nonresidential construction activity. All regions of the country reported a decline in billings in April, with each sector recording an index score below 50. Regional scores are calculated as three-month moving averages and may not always average out to the national score.