Lee Fehrenbacher//July 19, 2012//
The Architectural Billings Index dropped in June for the third straight month, suggesting an upcoming weakness in nonresidential construction projects, according to the most recent report from the American Institute of Architects.
The ABI represents the nine- to 12-month lag time between architectural billings and construction spending. In June, the index rose 0.1 percentage point from May to 45.9. Anything below a score of 50 reflects a decrease in demand for design services.
Kermit Baker, AIA鈥檚 chief economist, said that while not all firms experienced negative conditions, many were still struggling with the 鈥渟luggish and erratic marketplace.鈥
The West had the worst of it, with the regional ABI scoring 44.3. The Midwest fared best at 48.0; the South was at 47.0 and the Northeast was at 46.4.
The multifamily residential market saw the most activity with a score of 49.0, while the commercial/industrial sector scored 46.9. Institutional projects came in at 46.0 and mixed practice projects at 45.9.
On the bright side, the new projects inquiry index rose 0.4 points to 54.4 indicating there may be some projects brewing on the distant horizon.