The American Institute of Architects (AIA) reported Wednesday that the June Architecture Billings Index (ABI) score was 45.9, little changed from 45.8 in May, and reflecting another decrease in demand for design services. Any score over 50 indicates an increase in billings. 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 new projects inquiry index was 54.4, up slightly from mark of 54.0 the previous month.
"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."
The ABI was 48 in the Midwest, 47.6 in the South, 46.4 in the Northeast and 44.3 in the Western region. Meanwhile, the sector index breakdown was: multi-family residential (49.0); commercial/industrial (46.9); institutional (46.0) and mixed practice (45.9).