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News: Development + Destinations
April 28, 2020

AIA Reports Major Decline in Commercial Construction

The March 2020 Architecture Billings Index (ABI) plummeted to an overall reading of 33.3.

Words by: Will Speros

News:

Development + Destinations
April 28, 2020

AIA Reports Major Decline in Commercial Construction

The March 2020 Architecture Billings Index (ABI) plummeted to an overall reading of 33.3.

Words by: Will Speros

The latest Architecture Billings Index (ABI) from the American Institute of Architects (AIA) reflects a substantial downturn in the demand for design services from architecture firms. A leading economic indicator of construction activity in the U.S., the March 2020 ABI reflected a dramatically low score of 33.3. (Any score below 50.0 indicates a decrease in billings.)

“Though most architecture firms have made quick transitions to remote operations, the complete shutdown of business activity is severely impacting architects,” AIA chief economist Kermit Baker said in a press release. “The dramatic pullback in new and ongoing design projects reflects just how quickly and fundamentally business conditions have changed across the country and around the world in the last month as a result of the COVID-19 pandemic.”

All regional averages—West, South, Midwest, and Northeast—also reported low scores, as did the sector index breakdown, which indicated a decline in billings for institutional, multi-family residential, commercial/industrial, and mixed-practice projects. The project inquiries index and the design contracts index reflected the lowest numbers, at 23.8 and 27.1, respectively.

For more COVID-19-related news from HD, click here.

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