Architecture Billings Slip But Still Red Hot

It was bound to happen. Since bottoming out in May 2020 with a score of 32, the Architecture Billings Index (ABI) published by the American Institute of Architects has been on a meteoric rebound, peaking last month at 58.5 (a value greater than 50 means that architecture billings are increasing; conversely, any value less than 50 means billings are decreasing. The ABI is a nine-to-12 month leading indicator of construction activity). That kind of growth was unlikely to last forever and it didn't. The June ABI was reported today at 57.1 which is a decrease but is still the third highest reading since at least 2012. Long story short: architects are still busy which means builders should remain relatively busy for the foreseeable future.

Three out of four regional ABI figures were down, but again, they are still very robust:

• Northeast: 53.2 (down  from 54.2 in May)
• South: 57.3 (down from 59 last month)
• Midwest: 62 (down from last month's 63.4 but still torrid)
• West: 59.7 (up from May's 57.4 and the only gainer)

​The record for industry sectors was 50-50 with two small increases and two decreases:

• Multi-family Residential: 57.9 (down from 59.5 in May)
• Commercial/Industrial: 61 (up from 60.6 last month)
• Mixed Practice: 56.4 (down from 57.9 in May)
• Institutional: 57.3 (up fractionally from May's 57.1)

A particular bright spot is project inquiries which reached a new record with a 71.8. The cost of timber and lack of labor have apparently not stopped owners from reaching out to architects.

All in all, the good news keeps on coming. Stay safe out there...fatigue is real.