Structure billings proceed to say no

WASHINGTON – Demand for design providers from U.S. structure companies continued to contract in December, based on a brand new report from the American Institute of Architects (AIA).

The tempo of decline throughout December slowed from November, posting an Structure Billings Index (ABI) rating of 47.5 from 46.6 (any rating beneath 50 signifies a decline in agency billings). Inquiries into new tasks posted a optimistic rating of 52.3, nonetheless new design contracts remained in detrimental territory with a rating of 49.4.

“Regardless of robust income progress final yr, structure companies have modest expectations concerning enterprise circumstances this coming yr,” mentioned AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “With ABI scores for the whole fourth quarter of 2022 in detrimental territory, a slowdown in building exercise is anticipated later this yr, although the depth of the downturn stays unclear.”

Key ABI highlights for December embody:

• Regional averages: Midwest (49.4); South (48.6); Northeast (46.5); West (45.5)
• Sector index breakdown: combined apply (54.8); institutional (47.3); business/industrial (45.2); multi-family residential (44.3)

The regional and sector classes are calculated as a three-month transferring common, whereas the nationwide index, design contracts and inquiries are month-to-month numbers.

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