Design firms are reporting a surge of activity, particularly in the Midwest, according to a monthly index. “Architects are also reporting that clients are placing some projects on hold, which gives indication that business conditions will remain positive in the months ahead,” Jessica Reinert, executive director of the American Institute of Architects (AIA) Iowa chapter, said in a release. The AIA Architecture Billings Index was 54.7 in July, down one point from June. The Midwest led all regions of the country with a score of 58.2. Any score above 50 indicates an increase in billings. Inquiries about new projects nudged up to 63.7 in last month. Rising construction costs mean that some clients might be able to fit their projects into capital and municipal budgets and could lead to a tightening in the marketplace, Reinert said. Rising costs, a shortage of skilled labor and contractors chasing a jobs in an improving economy are leading to delays in some jobs. For example, Urbandale City Manager A.J. Johnson said the city has postponed a beautification project on Douglas Avenue near Interstate 35/80 and other projects.