Economy
Architecture Billings Index tumbles in May
Written by Brett Linton
June 26, 2024
The Architecture Billings Index (ABI) declined in May to its lowest level in nearly four years, according to the American Institute of Architects (AIA) and Deltek. The Index continues to indicate weak business conditions amongst architecture firms.
The May ABI score of 42.4 marks the 16th consecutive month the index has been in contraction territory. This time last year the index was 49.9, while two years prior it stood at a positive 52.3.
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.
“The decline in the May ABI score continues a year and a half of weakness in design billings at US architecture firms,” said AIA chief economist Kermit Baker.
“Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession,” he added.
The project inquiries index eased 2.7 points to 52.1 in May, a seven-month low. The design contracts index fell 3.6 points to 49.2, the lowest measure since July 2020.
All regional indices continued to indicate contraction through May. The Northeastern and Southern region indices saw a slight increase in May, while the Midwestern and Western indices declined. Conditions remained weakest at firms located in the Midwest.
Business condition changes varied by sector in May, though declining conditions remained across the board. The multifamily residential and commercial/industrial sectors experienced growth from April to May, while the institutional and mixed practice sectors declined and remained the weakest areas.
Brett Linton
Read more from Brett LintonLatest in Economy
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.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.