Demand for design services at architecture firms decreased in June 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 June was 49.1, which is down from 50.2 in May. Any score below 50 indicates a decrease in billings. Both the project inquiries index and the design contracts index continued to soften in June but remained positive.
“With billings declining or flat for the last five months, it appears that we are settling in for a period of soft demand for design services,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “With the new design contracts score reaching a 10-month low and the project inquiries score hitting a 10-year low, work in the pipeline may start to get worked off, despite current robust backlogs.”
Key ABI highlights for June include:
— Regional averages: South (51.9); West (49.3); Midwest (48.9); Northeast (46.1)
— Sector index breakdown: mixed practice (54.3); commercial/industrial (52.3); institutional (47.0); multi-family residential (46.3)
— Project inquiries index: 52.8
— Design contracts index: 50.3
The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.
Related Stories
Market Data | Jul 13, 2021
ABC’s Construction Backlog Indicator and Contractor Confidence Index rise in June
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June.
Market Data | Jul 8, 2021
Encouraging construction cost trends are emerging
In its latest quarterly report, Rider Levett Bucknall states that contractors’ most critical choice will be selecting which building sectors to target.
Multifamily Housing | Jul 7, 2021
Make sure to get your multifamily amenities mix right
One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.
Market Data | Jul 7, 2021
Construction employment declines by 7,000 in June
Nonresidential firms struggle to find workers and materials to complete projects.
Market Data | Jun 30, 2021
Construction employment in May trails pre-covid levels in 91 metro areas
Firms struggle to cope with materials, labor challenges.
Market Data | Jun 23, 2021
Construction employment declines in 40 states between April and May
Soaring material costs, supply-chain disruptions impede recovery.
Market Data | Jun 22, 2021
Architecture billings continue historic rebound
AIA’s Architecture Billings Index (ABI) score for May rose to 58.5 compared to 57.9 in April.
Market Data | Jun 17, 2021
Commercial construction contractors upbeat on outlook despite worsening material shortages, worker shortages
88% indicate difficulty in finding skilled workers; of those, 35% have turned down work because of it.
Market Data | Jun 16, 2021
Construction input prices rise 4.6% in May; softwood lumber prices up 154% from a year ago
Construction input prices are 24.3% higher than a year ago, while nonresidential construction input prices increased 23.9% over that span.
Market Data | Jun 16, 2021
Producer prices for construction materials and services jump 24% over 12 months
The 24.3% increase in prices for materials used in construction from May 2020 to last month was nearly twice as great as in any previous year
