The American Institute of Architects (AIA) latest AIA/Deltek Architecture Billings Index posted a score of 47.2, indicating soft inquiries, contracts and project activity across the sector.
This is a slight increase from the July reporting of 46.6. Additionally, AIA reported that employment increased for architectural services by an estimated 700 positions.
Despite these modest gains, persistent inflation and high borrowing costs continue to weigh on the sector.
“Architecture firms are caught between stubborn inflation and higher borrowing costs,” said AIA Chief Economist Richard Branch. “The Federal Reserve’s latest rate increase may help ease inflationary pressures over time, but in the near term it adds another headwind for projects already facing a difficult financing environment.”
