Architecture firms reported steady business conditions in June 2023, states the American Institute of Architects (AIA). June’s Architectural Billings Index (ABI) posted a score of 50.1, slightly lower than May’s ABI reading of 51.0. However, any score above 50 indicates an increase in billings.

June’s Architectural Billings Index (ABI) posted a score of 50.1, slightly lower than May’s ABI reading of 51.0. However, any score above 50 indicates an increase in billings.

The ABI is a leading economic indicator that leads nonresidential construction activity by approximately 9-12 months.

June’s positive ABI reading underscores the stability that has returned to the market following several months of rollercoaster postings. AIA chief economist Kermit Baker says it’s encouraging to see consecutive months of stability after several quarters of weakness due to high inflation, rising interest rates and increased construction costs.

However, he adds, “We are still facing some headwinds in the broader economy, but this respite suggests that market conditions may be finding firmer ground.”

ABI data also shows that the project inquiries index declined to 56.7 from May’s score of 57.2, while the design contracts index increased to 52.7 from May’s reading of 52.3.

Regionally, all but one location surpassed the 50.0 mark (West, 48.6). The Midwest scored 52.4, the Northeast scored 50.6, and the South scored 50.5.

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