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In June, business conditions at architecture firms remained soft, with AIA/Deltek reporting an Architecture Billings Index (ABI) score of 46.4 (any score below 50.0 indicates decreasing business conditions). This is a small uptick from the previous month's score of 42.4, meaning that somewhat fewer firms reported a decline in billings in June than May.

Data courtesy American Institute of Architects/Deltek

“Architecture firms continue to face a period of headwinds in the construction sector, driven by elevated interest rates, high construction costs, and generally weak property values,” said AIA chief economist Kermit Baker. "This is the 17th consecutive month of a billings decrease and yet, despite the softness, firms remain generally optimistic that conditions will start to improve once interest rates begin to ease.”

Billings declined in every region except for the Northeast. Firms of all specializations experienced a decline in business conditions; those with the commercial/industrial sector seeing the greatest rate of decline. Indicators of future work remained soft as well, including inquiries into new work, value of newly signed design contracts, and number of projects in backlog at firms.

Data courtesy American Institute of Architects/Deltek

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