AIA Reports a Drop in June’s Architecture Billings Index

After showing signs of stabilization over the last three months, the Architecture Billings Index (ABI) plunged nearly five points in June. The American Institute of Architects (AIA) reported the June ABI rating was 37.7, down from the 42.9 rating the previous month. The new projects inquiry score was 53.8, the fourth straight month with a score in the mid-50s.”It appears as though we may have not yet reached the bottom of this construction downturn,” says AIA chief economist Kermit Baker, PhD, Hon. AIA. “Architecture firms are struggling and concerned that construction market conditions will not even improve as soon as next year. There has also been little movement in terms of stimulus funding allocated for design projects having the desired impact of leading to new work.”
Key June ABI highlights:

· Regional averages: Northeast (42.8), South (40.5), West (39.9), Midwest (36.2);
· Sector index breakdown: mixed practice (43.5), multi-family residential (42.7), commercial/industrial (39.5), institutional (37.0);
· Project inquiries index: 53.8.