Economy
ABI: Architecture Firms' Business Activity Steady In June
Written by Becca Moczygemba
July 20, 2023
Business activity at architectural firms was stable in June vs. May, though billings were still increasing, according to the American Institute of Architects (AIA)/Deltek Architecture Billings Index (ABI) score.
May’s rebound of 51.0, the highest reading since February, was slightly than June’s 50.1 index. Both readings are an improvement over April’s index of 48.5, and it’s the first time this year that there have been two consecutive increases in billings.
The ABI is a leading economic indicator for nonresidential construction activity with a lead time of 9-12 months. Note than any score above 50 indicates an increase in billings.
Inquiries for new projects remained strong, as did the number of new design contracts. The new design contracts index rose to 52.7 in June from 52.3 in May.
“Firms in nearly all regions of the country also reported improving business conditions in June, with firms located in the Midwest continuing to see the strongest billings for the eighth consecutive month,” AIA said in a release.
The strongest billings came from firms located in the Midwest for the eighth consecutive month at an index level of 52.4, while the lowest came from the West at 48.6. The South was at 50.5 and the Northeast stood at 50.6. Firms with an institutional specialization have reached the highest level since just after the pandemic, according to AIA. However, low activity continues for firms with a specialization in multifamily residential and commercial/industrial billing.
“Business is hot and cold. We remain optimistic and busy currently, but have seen other industry forecasts that predict a future decline, so we remain cautious,” said one Southern firm in the release.
The architecture services sector added 1,300 jobs in May, leading to the largest monthly growth since November 2022, AIA said. Overall economic activity was solid in June as the Consumer Price Index (CPI) revealed that consumer prices increased by 0.2% from May to June, and the rate of growth slowed to 3% from one year ago.
An interactive history of the AIA Architecture Billings Index is available on the SMU website.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Economy
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.