Architecture Firms Report Steady June Billings

Architecture firms reported steady business conditions in June 2023, say officials from the American Institute of Architects. 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 non-residential construction activity by approximately 9-12 months.

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.

Institutional Planning Bogs Down June Momentum Index

Dodge Construction Network’s (DCN) monthly Momentum Index (DMI) reported a deceleration in institutional planning, contributing to a 2.5% decline in June’s index. For the month, the DMI dropped to 197.3 from a revised May reading of 202.4. Institutional planning recorded a 10.5% decline, while commercial planning rose 3.1%.

The DMI is a monthly measure of the initial report for non-residential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.

Sarah Martin, associate director of forecasting for DCN, says that while institutional planning has slowed following “robust highs of the last three months,” the segment still shows higher year-over-year readings. In fact, institutional planning was up 39% from a year ago, DMI data shows.
On the other hand, commercial planning ticked up due to increased data center and hotel planning projects. The commercial segment was 17% higher than a year ago.

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