Architecture Billings Index Indicates Drop in Demand for Design Services Across the Board

Architecture Billings Index Indicates Drop in Demand for Design Services Across the Board

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.

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.

"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," commented 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 2012 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

AIA

  • Filed under Architecture
  • Last updated
  • 45,328 impressions, 2,317 clicks