Dive Brief:
- The Architectural Billings Index edged down slightly to 52.6 in June, less than one point from May's score of 53.1, the American Institute of Architects reported Wednesday.
- Despite the slight downward movement, the reading still represents the fifth straight month of increased demand for design services, driven by residential demand, the highest in two years.
- Any mark above 50 on the ABI indicates a rise in billings, and it is an indicator of future construction spending within 9-12 months. June's new projects inquiry index also fell slightly to 58.6, and the design contracts index dipped to a score of 49.7.
Dive Insight:
Although the AIA said it expects industry momentum to continue, AIA Chief Economist Kermit Baker said in a release that the fall of design contracts to a negative Index reading for the first time in two years "is something of a concern." As for what the Index readings mean for housing, Baker said, "Demand for residential projects has surged this year, greatly exceeding the pace set in 2015. This suggests strong future growth for housing in the coming year."
Regionally, the South (55.5), West (54.1) and Northeast (51.8) all fell into positive Index territory, while the Midwest (48.2) reading was negative. As far as sectors, multifamily (57.9), institutional (52.7) and commercial/industrial (50.3) were all positive.
