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The newest AIA/Deltek Architecture Billings Index (ABI) shows a slight dip compared to the previous month’s report as firms nationwide continue to experience a decline in billings and remain solidly in negative territory. The May ABI, released in June, scored 47.2 (a four-point increase from the previous month). However, the just-released June ABI falls back down again with a score of 46.8. (Any score below 50.0 indicates softening business conditions at architecture firms.)

Image courtesy the American Institute of Architects

Notably, inquiries into new projects increased for the second consecutive month and grew at the strongest pace since last fall with a healthy score of 53.6. As the AIA points out, this uptick signals that clients are starting to send out RFPs and initiate conversations with architecture firms about potential projects. These inquiries, however, do not necessarily translate into actual projects. Case in point: the value of newly signed design contracts declined for the 16th consecutive month in June. The AIA notes that it is unlikely that firm billings will rise above a score of 50 and into positive territory until the value of new design contracts also starts to trend upward again.

Image courtesy the American Institute of Architects

“Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said AIA chief economist Kermit Baker in a statement.“Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”

Image courtesy the American Institute of Architects

Regionally, the South, as mentioned by Baker, along with and Northeast reported the highest scores (a non-soft 50.6 and 46.5, respectively). Among sectors, institutional projects continued to lead with a score 49.2, up three points from May. Residential projects previously showed the most significant signs of a rebound, increasing from a score of 40.8 to 46.1 over the last two ABIs. The latest data, however, shows a descent back down to a score of 43.8

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