Architecture billings still sluggish despite project inquiry uptick

Despite the ongoing slowdown, project inquiries showed signs of life, climbing to 53.6, the strongest pace since last fall.

However, the inquiries have yet to convert into actual work, as the value of newly signed design contracts fell for the 16th consecutive month.

AIA sees a turnaround as unlikely until there is a rebound in the value of new contracts.

“Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said Kermit Baker, chief economist at the American Institute of Architects (AIA). “Other regions saw declining billings, though at a slower pace.”

Baker further noted, “While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions.”

The ABI is a leading indicator for near-term nonresidential construction activity and projects business conditions approximately 9-12 months down the road (the typical lead time between architecture billings and construction spending).

An interactive history of the June ABI is available here on our website.