Economy
AIA Billings Index Continues Contraction in May
Written by Sandy Williams
June 26, 2020
The Architecture Billings Index remained in contraction in May with a score of 32.0 following a record drop in billings in April, said the American Institute of Architects. Although the monthly scores moderated slightly, billings continued to decrease, inquiries continued to decline and the value of newly signed contracts remained at near record-lows. The projects inquiry index registered 38.0 and design contracts index 33.1.
“A large portion of the design and construction industry remains mired in steep cutbacks as many businesses and organizations are still trying to figure out what actions make sense in this uncertain economic environment, “said AIA Chief Economist Kermit Baker. “There are growing signs of activity beginning to pick up in some areas, but others are seeing a pause as pandemic concerns continue to grow.”
A decline in billings occurred across all sectors: institutional (35.7); multi-family residential (34.8); mixed practice (28.5); commercial/industrial (24.8).
AIA noted that business conditions were very soft across all regions with the Northeast reporting the steepest decline in billings. Construction projects that were halted during the pandemic are now able to resume and “less dismal” conditions may be seen in June, said the AIA.
The regional averages were well below the neutral point of 50: West (36.0); South (30.6); Midwest (29.7); and Northeast (25.1).
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
ISM: Manufacturing sector contracted in April
The Index had briefly showed expansion in March, but has indicated a contracting manufacturing sector for 17 of the last 18 months.
Chicago Business Barometer falls to 16-month low
The Chicago Business Barometer slipped further in April, now at the lowest measure recorded since November 2022.
Leading nonres indicator falls to more than three-year low
An important economic indicator for the nonresidential construction industry declined in March to its lowest point in more than three years.
Fed Beige Book: Economy improves, but manufacturing weak
While general economic conditions across the US improved slightly over the last six weeks, activity in the manufacturing sector was weak, according to the Fed’s latest Beige Book report.