The AIA/Deltek Architecture Billings Index (ABI) remained below the growth threshold in June with a score of 46.8, down from 47.2 in May. According to Kermit Baker, chief economist at the American Institute of Architects (AIA), business conditions were soft nationwide, with a slight billing increase in the South. Other regions saw declining billings, though at a slower pace.
The decline in billings is attributed to concerns about the broader economy and tariffs impacting commercial real estate development and spending. Multifamily firms faced the weakest conditions, with further declines. However, inquiries into new projects increased for the second consecutive month, growing at the strongest pace since last fall with a score of 53.6.
The AIA’s midyear forecast predicts overall spending on nonresidential buildings will increase only 1.7% this year and grow modestly to 2% next year. Spending on manufacturing facilities is expected to decline 2% this year and 2.6% next year, while institutional facilities are projected to gain 6.1% this year and 3.8% in 2026.
