Demand for design services in May remained essentially flat in comparison to the previous month, according to a new report today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for May showed a small increase in design services at 50.2, which is slightly down from 50.5 in April. Any score above 50 indicates an increase in billings. Both the project inquiries index and the design contracts index softened in May but remained positive.
“The last four consecutive months, firm billings have either decreased or been flat, the longest period of that level of sustained softness since 2012,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While both inquiries into new projects and the value of new design contracts remained positive, they both softened in May, another sign the amount of pending work in the pipeline at firms may be starting to stabilize.”
Key ABI highlights for May include:
— Regional averages: Midwest (51.6); South (51.4); West (50.0); Northeast (47.5)
— Sector index breakdown: mixed practice (55.4); commercial/industrial (53.0); institutional (48.0); multi-family residential (46.0)
— Project inquiries index: 56.2
— Design contracts index: 50.9
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers. View this press release on AIA's website.
Related Stories
Market Data | Oct 14, 2021
Prices for construction materials continue to outstrip bid prices over 12 months
Construction officials renew push for immediate removal of tariffs on key construction materials.
Market Data | Oct 11, 2021
No decline in construction costs in sight
Construction cost gains are occurring at a time when nonresidential construction spending was down by 9.5 percent for the 12 months through July 2021.
Market Data | Oct 11, 2021
Nonresidential construction sector posts first job gain since March
Has yet to hit pre-pandemic levels amid supply chain disruptions and delays.
Market Data | Oct 4, 2021
Construction spending stalls between July and August
A decrease in nonresidential projects negates ongoing growth in residential work.
Market Data | Oct 1, 2021
Nonresidential construction spending dips in August
Spending declined on a monthly basis in 10 of the 16 nonresidential subcategories.
Market Data | Sep 29, 2021
One-third of metro areas lost construction jobs between August 2020 and 2021
Lawrence-Methuen Town-Salem, Mass. and San Diego-Carlsbad, Calif. top lists of metros with year-over-year employment increases.
Market Data | Sep 28, 2021
Design-Build projects should continue to take bigger shares of construction spending pie over next five years
FMI’s new study finds collaboration and creativity are major reasons why owners and AEC firms prefer this delivery method.
Market Data | Sep 22, 2021
Architecture billings continue to increase
The ABI score for August was 55.6, up from July’s score of 54.6.
Market Data | Sep 20, 2021
August construction employment lags pre-pandemic peak in 39 states
The coronavirus delta variant and supply problems hold back recovery.
Market Data | Sep 15, 2021
ABC’s Construction Backlog Indicator plummets in August; Contractor Confidence down
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August.