There was a negligible increase in the American Institute of Architects’ Architecture Billings Index (ABI) last month, which reflects the approximate 9- to 12-month lag time between architecture billings and construction spending. The June ABI rating was 46.0, up slightly from 45.8 the previous month. This score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index increased from 55.5 to 57.7.
“The steep decline in nonresidential property values has slowed investment in new facilities,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Conditions at architecture firms continue to remain very soft, but we’re optimistic that they will improve before the end of the year.”
Key June ABI highlights: Regional averages: Northeast (47.7), South (46.7), Midwest (46.3), West (43.6) Sector index breakdown: commercial / industrial (50.6), multifamily residential (46.5), institutional (45.0), mixed practice (44.7) Project inquiries index: 57.7
