After showing signs of stabilization over the last three months, the Architecture Billings Index (ABI) plunged nearly five points in June.
As a leading economic indicator of construction activity, the ABI reflects the approximate 9-12 month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the June ABI rating was 37.7, far lower than the 42.9 the previous month. This score indicates a sharp decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 53.8, the fourth straight month with a score in the mid-50s.
What does this mean? It may well mean we’re not at bottom yet.
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