In its August Architecture Billings Index, the AIA put it bluntly:“the overall trend remains downward.” And it’s easy to see why, given that August marks another month with declining billings, reporting a score of 47.2.

In its monthly report the AIA noted in August the value of new design contracts declined for the 18th consecutive month, adding that this marks “the longest decline in 15 years of data collection.” It has summarized the first three quarters of the year as having “soft inquiries and a steady drop in newly signed design contracts” and “hesitant” clients.

Kermit Baker, AIA Chief Economist, still opted for optimism in his statement. “While business conditions remained soft at architecture firms nationally, there are signs that the downturn may be bottoming out,” he said. “Inquiries for new projects have increased four straight months, and billings both at firms with a multifamily or commercial/industrial specialization are beginning to stabilize.”

In addition to the national score, the AIA Architecture Billings Index also shares regional averages from respondent firms. While last month the South was the only region to report a score over 50, that dropped ever so slightly in August to 49.9, a minimal decline. Other regions across the country remain low with the West at the lowest, at 43.5.

As Baker indicated, firms specializing in commercial/industrial appear to be seeing an uptick, albeit a small one, as indicated in the report by the score: 50.8. Firms working on multifamily residential projects are holding on steady too with only a slight decrease in billings, 49.9.

Amid the decline in billings, inquiries into new projects continue to rise. Last week the Federal Reserve approved a quarter-point cut to interest rates that will, hopefully, abate some financial burdens and stimulate economic growth and borrowing power.

Cutting of rates couldn’t have come at a better time. The sector hasn’t grown in 18 consecutive months! Wild to think about. The world got drunk on cheap lending and a modest rise in interest rates have people fearful of taking on new projects and construction. I hope it gets better and this is the bottom. Time will tell.