The American Institute of Architects (AIA) has published the latest Architecture Billings Index (ABI) report capturing tepid demand for design services during the month of May as the economic fall out from the COVID-19 crisis continues. 

The report indicates that the demand for architectural services has so far seen "few signs of rebounding following a record drop in billings the month prior." For the figures below, any score below 50 signals a contraction in demand while a score above 50 indicates a growth in demand. This month's report is the third consecutive ABI survey showing negative scores across all ABI indexes.

May ABI highlights

• Architecture Billings Index score for May: 32.0
• Project inquiries index: 38.0
• Design contracts index: 33.1

The report shows slight gains from the month of April with regards to project inquiries and design contract executions, though all indexes covered by ABI remain firmly within the negative realm. 

Summarizing the report, AIA Chief Economist Kermit Baker, Hon. AIA, PhD. writes, “A large portion of the design and construction industry remains mired in  steep cutbacks as many businesses and organizations are still trying to figure out what actions make sense in this uncertain economic environment.”

Baker adds,“There are growing signs of activity beginning to pick up in some areas, but others are seeing a pause as pandemic concerns continue to grow.”

Lackluster grown seen across the country

• Regional average, West 36.0
• Regional average, South 30.6
• Regional average, Midwest 29.7
• Regional average, Northeast 25.1

The report's regional figures, in fact, paint a more dire picture, as three of the four areas surveyed posted lower figures than in April. In April, the West sector had a score of 38.0, this month, it stands at 36.0, for example. The South and Midwest regions both saw a decrease in demand, as well, while the Northeast sector saw slight growth.

Market sectors continue contraction

• Institutional: 35.7
• Multi-family residential: 34.8
• Mixed practice: 28.5
• Commercial / Industrial: 24.8

Of the four market sectors ABI looks at, three have contracted over the last month. Multi-family residential construction, however, has rebounded slightly from a score of 30.3 in April; Institutional, Mixed Practice, and Commercial / Industrial sectors fell by one to three points each. 

Although economists, including Baker, have pointed to the possibility of a "V' or "U"-shaped economic recovery following the re-opening of the American economy, the latest report seems to show that such a rebound has yet to materialize within architecture, though economic forecasting from other groups, particularly within the construction industry, indicates that a certain level of economic activity is returning to the building sector. Next month's report should set a more definitive tone, as it will be the first ABI survey to take place since reopening began.