Weak Market Conditions Persist According to Architecture Billings
Index Drop in demand for design services across the board
For immediate release:
Washington, D.C. – July 18, 2012 – The Architecture Billings Index (ABI) saw more poor conditions last month, indicating a drop in design activity at U.S. architecture firms, and suggesting upcoming weakness in spending on nonresidential construction projects.
As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The American Institute of Architects (AIA) reported the June ABI score was 45.9, nearly identical to the mark of 45.8 in May. This score reflects a sharp decrease in demand for design services (any score above 50 indicates an increase in billings).
The new projects inquiry index was 54.4, up slightly from mark of 54.0 the previous month.
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The downturn in design activity that began in April and accelerated in May has continued into June, likely extending the weak market conditions we’ve seen in nonresidential building activity ,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “While not all firms are experiencing negative conditions, a large share is still coping with a sluggish and erratic marketplace.”
Key June ABI highlights:
- - Regional averages: Midwest (48.0), South (47.6), Northeast (46.4), West (44.3)
- - Sector index breakdown: multi-family residential (49.0), commercial / industrial (46.9), institutional (46.0), mixed practice (45.9)
- - Project inquiries index: 54.4
The regional and sector categories are calculated as a 3-month moving average, whereas the index and inquiries are monthly numbers.
Contact: Scott Frank
202-626-7467
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