ARCHITECTURE BILLINGS INDEX

An index value > 50 represents that architects have reported more activity for that particular metric than the prior month. These metrics are leading indicators as the Architecture Billing Index (ABI) reflects projects in design that will enter the construction phase in 9 to 12 months and the New Project Inquiry Index (NPII) reflects new project demand from owners to potentially enter the design phase.

Activity from August 2022 to August 2023 has been on an upward trend. This is the first year long upward trend since early 2021. This could signal a strengthening of the construction market to come.

BARRINGER INSIGHT BASED ON The American Institute of Architects (AIA) Architecture Billings Index (ABI) June 2023

50.1 ARCHITECTURE BILLINGS INDEX (ABI)

47.8

Commercial/ Industrial

55.4 Institutional

50.5 South Region

56.7 New Project Inquiry

Backlog once again remained stable in June despite tight credit conditions and high interest rates. While those risk factors drove a decline in all three Construction Confidence Index series, contractors continue to signal an expectation that sales, profit margins, and staffing will expand over the second half of 2023.

BARRINGER INSIGHT BASED ON Associated Builders and Contractors, Inc. (ABC) Backlog Indicator

June 2023

US Census Bureau

June 2023

Backlog By Region

8.9 MONTHS

8.4 MONTHS

South 9.5 MONTHS

Backlog By Company

The backlog in the South region remains the strongest – a position it has held since Q2 2017 marking 25 consecutive quarters

Backlog By Industry

9.0 MONTHS (-0.4)

Institutional

6.4 MONTHS (-1.8) Heavy Industrial 11.2 MONTHS (+1.2)

The growth in backlog for heavy industrial and infrastructure is being driven by public funding to improve infrastructure and the increase in state-side manufacturing