Dive Brief:
- The American Institute of Architects reported the Architectural Billings Index score for April as 48.8, a drop from the 51.7 posted in March.
- In the last 15 months, 13 have seen an increase in design services.
- The regional breakdown was: 43.2 in the Northeast, 49.9 in the Midwest, 52.9 in the West, and 55.8 in the South.
Dive Insight:
The brutal weather conditions of this past winter are still impacting the industry, the AIA reported. The Northeast and Midwest took the brunt of the harsh weather, and the numbers indicate that the industry has yet to fully rebound.
“The fact that both inquires for new projects and new design contracts continued to accelerate at a healthy pace in April points to strong underlying demand for design activity," AIA Chief Economist Kermit Baker said in a release. "However, April would typically be a month where these projects would be in full swing, but a severe winter in many parts of the Northeast and Midwest has apparently delayed progress on projects.”
The index is a leading economic indicator of construction activity, as architectural billings can predict construction spending nine to 12 months in the future.