The American Institute of Architects (AIA) has published its monthly  Architecture Billings Index (ABI) report for the month of June, which registers slight growth in the demand for design services relative to the previous month after a season of steep declines due to the COVID-19-pandemic. 

June ABI highlights

• Architecture Billings Index score for June: 40.0
• Project inquiries index: 49.3
• Design contracts index: 44.0

An announcement from the AIA highlighting the latest report explains that demand for design services for architecture firms "began to stabilize in June, following their peak declines in April." The figures build on slight gains seen in the month of May and represent the second consecutive month of demand growth following April's historic lows. 

For reference, May's ABI report posted an overall score of 32.0, while inquiries and contract executions registered scores of 38.0 and 33.1, respectively. Though still below the 50.0 mark that signals overall growth in demand, the recent figures offer hope that economic tides have begun to turn for the industry following the shocks of the economic shutdown, the transition to work from home, and the widespread cessation of construction activities in many major economic centers amid the first and now second waves of the deadly COVID-19 pandemic in the United States. 

At least 142,000 people have died due to the disease and more than 20 million people have lost their jobs since March.

Lackluster grown seen across the country

• Regional average, West 36.8
• Regional average, Midwest 36.8 
• Regional average, South 35.9
• Regional average, Northeast 34.2

Regionally speaking, all parts of the country showed modest improvements from May, with the Northeast area posting a score above 30 for the first time since before the pandemic took hold. The Midwest showed a significant improvement in June, as well, after posting a score of 29.7 in May, and is now tied for the highest score overall with the West. The South region grew relative to May but not as much as the Midwest. Now that the epicenter of the pandemic has shifted from the Northeast to the South and West regions, it is possible that the demand for design services could be impacted there in next month's report. 

Market sectors continue contraction

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

In terms of market sectors, multi-family residential and institutional projects offer bright spots for the industry, which has seen these types of project remain under construction during the course of the pandemic. Multi-family housing, in particular, has shown strong signs of potential growth across the economy due to the deeply entrenched nature of the nation's housing crisis and to the fact that shifts in how people use their residences has changed fundamentally with the transition to work from home, distance learning, and quarantine initiatives all taking hold. Mixed practice and commercial / industrial projects have been particularly hard hit by the crisis and are expected to continue to lag behind for the foreseeable future as states that had attempted to "re-open" following the crest of the first wave of coronavirus infections have had to once again hastily reimpose economic lockdowns to stem the spread of the virus, which remains largely out of control across the country. 

Regarding the latest ABI report, AIA Chief Economist Kermit Baker, PhD, Hon. AIA explains, “While business conditions remained soft at firms across the country, those with a multifamily residential specialization saw the most positive signs. Unfortunately, conditions at firms with a commercial/industrial specialization are likely to remain weak for an extended period of time, until hospitality, office and retail facilities can fully reopen, and design demand for this space begins to increase.”