The bad news in architecture billings continued in June. According to the American Institute of Architects’ monthly Architecture Billings Index, the numbers for June came in similar to those for May. The national billings score is 45.9, almost identical to May’s 45.8. The new projects inquiry index is 54.4, which is slightly higher than May’s 54.0.
This makes three straight months that the billings score has shown contracting architecture billing and work. (Any number above 50 means that billings are growing; below 50 means contraction.) But the speed of contraction has at least slowed from May to June. This is also the second straight month that all four of the nation’s regions are showing market contraction, and the first month that all four industry sectors are showing market contraction. (The commercial sector was the last holdout still showing market growth last month.)
None of this news is good for architects, developers, or construction workers, since the AIA states that the ABI is a leading indicator for the construction industry. The one caveat might be that the market contraction also slowed, as shown in the charts in the slide show, in half of the regions and in three of the four industry sectors. Whether or not this will be a precursor to growth in these areas is something that we will need to wait another month to learn.
Regional Averages
Midwest: 48.0
South: 47.6
Northeast: 46.4
West: 44.3
Sector Index Breakdown
Multifamily Residential: 49.0
Commercial/Industrial: 46.9
Institutional: 46.0
Mixed Practice: 45.9
(The regional and sector categories are calculated as a three-month moving average, whereas the index and inquiries are monthly numbers.)
