Economy
Architecture Billings Index remains soft in April
Written by Brett Linton
May 23, 2024
The Architecture Billings Index (ABI) from the American Institute of Architects (AIA) and Deltek indicated architecture firm billings remained soft through April. While the latest index reading does not indicate improving business conditions, it is one of the higher measures seen in recent months, suggesting the recent slowdown could be diminishing.
The April ABI score of 48.3 is now the highest rate recorded since July. The Index has remained in contraction territory since February 2023. This time last year the index was 48.1, two years prior it was 55.1.
The ABI is a leading economic indicator for nonresidential construction activity, projecting business conditions approximately 9-12 months into the future. Any score above 50 indicates an increase in billings, while a score below 50 indicates a decrease.
“These findings indicate that while there is still caution among clients, there are also positive signs with increasing inquiries into new projects,” said AIA chief economist Kermit Baker.
“Continued high interest rates make it difficult for some projects to move forward, but there is ongoing interest in pursuing these projects once conditions improve. In the meantime, design activity is expected to remain sluggish,” he added.
The project inquiries index eased 0.1 points to 54.8 in April, now down to a three-month low. The design contracts index fell 0.8 points to 49.2, the lowest score since last November.
Results were overall down across the country. The Northeastern, Midwestern and Southern region indices all declined from March to April and remain in contraction territory. The Western region index saw a slight increase in April but continues to indicate declining conditions.
Changes in business conditions varied by sector from March to April, though conditions remained soft across the board. The multifamily residential and commercial/industrial sectors experienced growth month over month, while the institutional and mixed practice sectors witnessed declines.
Brett Linton
Read more from Brett LintonLatest in Economy
Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.
Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.
Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.
Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.
Manufacturing in New York state contracts again
However, companies are growing more optimistic about the future.