Business conditions remain soft at architecture firms in June with the AIA/Deltek Architecture Billings Index reporting a score of 46.4. Any score below 50 indicates that billings decline, although somewhat fewer firms reported a decline in billings in June than in May.
Indicators of future work remained generally soft as well:
- Only slightly more than half of the responding firms reported an increase in inquiries into new work.
- Firms reported a third consecutive month of decline in value of newly signed design contracts.
- While many firms still have a healthy backlog of projects in the pipeline, 6.4 months on average, this is the smallest that backlogs have been in more than three years.
Key ABI highlights for June include:
- Regional averages: Northeast (52.2); Midwest (40.9); South (43.9); West (43.1)
- Sector index breakdown: commercial/industrial (42.0); institutional (44.3); mixed practice (firms that do not have at least half of their billings in any one other category) (46.9); multifamily residential (45.1)
- Project inquiries index: 51.6
- Design contracts index: 45.6
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
Visit AIA’s website for more information.
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