AIA’s monthly Architecture Billings Index for June came in at a score of 40.0, an 8.0-point increase from May's score of 32.0, suggesting a slowdown in the billing declines reported by architecture firms. The ABI is a leading economic indicator of construction activity in the U.S. and reflects a nine- to 12-month lead time between architecture billings and construction spending nationally, regionally, and by project type. A score above 50 represents an increase in billings from the previous month, while a score below 50 represents a contraction.
"While business conditions remained soft at firms across the country, those with a multifamily residential specialization saw the most positive signs,” said AIA chief economist Kermit Baker, Hon. AIA, in the Institute's press release. “Unfortunately, conditions at firms with a commercial/industrial specialization are likely to remain weak for an extended period of time, until hospitality, office and retail facilities can fully reopen, and design demand for this space begins to increase." New project inquiries and design contracts also showed signs of stabilizing in June, posting scores of 49.3 and 44.0, respectively.
The month-to-month change in scores for regional billings—which, unlike the national score, are calculated as three-month moving averages— slightly improved in June with all four regions continuing to report scores below the threshold of 50. Billings in the Midwest rose 7.1 points to a score of 36.8, while billings in the South rose 5.3 points to a score of 35.9. Billings in the West rose 0.8 point to a score of 36.8, while billings in the Northeast increased 9.1 points to a score of 34.2.
Billings score declines also improved in all four individual industry sectors, though the scores also remain below the threshold of 50. The commercial/industrial sector rose 5.3 points to a score of 30.1. The institutional sector rose 3.2 points to a score of 38.9. The multifamily residential score rose 9.9 points to a score of 44.7. The mixed practice sector increased by 6.8 points to 35.3. Like the regional billings scores, sector billings scores are also calculated as three-month moving averages.