US billings bounce back but market remains unstable

The American Institute of Architects monthly billings index, created by surveying AIA member practices, jumped up three points in October following a sharp dip in September.

Over the past three months billing levels have jumped up and down creating a confusing picture for financial analysts, who view the index as an economic indicator of future construction activity, with spending on architectural services taking place between nine and twelve months before further construction spending.

The index, which records positive growth as any score over 50, reported its first positive results in four months in August, before dropping from 51.4 to 46.9 in September. In October the score was 49.4.

New project inquiries also jumped up, from a reading of 54.3 in September to 57.3 in October.

"An increase in the billings index is always an encouraging sign,"said AIA chief economist, Kermit Baker.

"We’re seeing some regions and some construction sectors move into positive territory. But there continues to be a high level of volatility in the marketplace, with architecture firms reporting a wide range of conditions from improving to uncertain to poor. It’s likely we will see a similar state of affairs in the coming months."