AIA's Construction Index Rebounds, but Still Remains Soft
Though rebounding slightly compared to the prior month, the Architecture Billings Index (ABI) from the American Institute of Architects (AIA) remains negative, signaling continued weakness in the construction industry.
Though rebounding slightly compared to the prior month, the Architecture Billings Index (ABI) from the American Institute of Architects (AIA) remains negative, signaling continued weakness in the construction industry.
The June ABI rating was 46.1, up from the 43.4 mark in May (any score above 50 indicates an increase in billings). But as the fifth straight month that the index has remained below the 50 threshold, the index shows that business levels at U.S architecture firms continue to deteriorate.
The inquiries for new projects score was 51.8.
“Very recently, the Midwest has been showing the best regional conditions,” says AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “But otherwise, these numbers are a continuation of weak conditions in the nonresidential construction sector. Given that inquiries for new project work have not seen much improvement, it’s likely we are several months away from a turnaround.”
Regional ABI Averages
Midwest: 51.8
South: 49.9
Northeast: 40.7
West: 36.1
Sector Index Breakdown:
Institutional; 51.6),
Commercial / industrial: 45.8
Mixed practice: 44.1
Multi-family residential: 37.9
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to an economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity.
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