AIA’s monthly Architecture Billings Index for May came in at a score of 32.0, a 2.5-point increase from April’s stunningly low value of 29.5. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
“A large portion of the design and construction industry remains mired in steep cutbacks as many businesses and organizations are still trying to figure out what actions make sense in this uncertain economic environment,” said AIA chief economist Kermit Baker, Hon. AIA, in an AIA press release. “There are growing signs of activity beginning to pick up in some areas, but others are seeing a pause as pandemic concerns continue to grow.” April’s steep drop in new project inquiries and design contracts leveled slightly in May with scores of 38.0 and 33.1, respectively.
The month-to-month change in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages—moderated in May with all four regions continuing to report scores below the threshold of 50. Billings in the Midwest fell 1.5 points to a score of 29.7, while billings in the South fell 0.5 point to a score of 30.6. Billings in the West fell 2.1 points to a score of 36.0, while billings in the Northeast increased 2.1 points to a score of 25.1.
Billings score declines also leveled off in all four individual industry sectors, though the scores remain well below the threshold of 50. The commercial/industrial sector fell by 3.0 points to a score of 24.8. The institutional sector decreased by 0.4 point to a score of 35.7. The multifamily residential score increased by 4.5 points to a score of 34.8. The mixed practice sector decreased by 0.5 point to 28.5. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.
