(05-21-18)
April extended the string to seven straight months that US architecture firms have reported gains in design billings, as the Architecture Billings Index score of 52.0 was a slight improvement over the 51.0 reading for March. Growth rates for billings, inquiries, and new design contracts are basically keeping pace with 2017, so architecture firms should see another solid year of business activity. However, the performance of firms across the country is beginning to show some separation. The ABI reading of 50.3 for firms in the Northeast shows only a modest increase over the pace in March, and is the first monthly reading over 50 since last November. The 49.6 reading for Midwestern firms signifies a slight decline in billings, and is the latest in a three month slowdown in billings for firms in this region. In contrast, firms in the South and West are reporting more robust business conditions. In the West, in particular, the 55.1 regional ABI score extends a stretch of solid monthly readings. The ABI score for firms in the South was a modest 51.8, but continues the steady positive monthly readings for this region to six years. While the regional ABI scores are beginning to show more variation, the building sectors are reflecting greater consistency. Firms with a multifamily residential specialization have slowed a bit from torrid pace of growth in recent months, while firms with a commercial/industrial or institutional specialization reported a modest acceleration in billings in April. Both of these specializations, but in particular firms focused on the institutional sector, have the potential for further upside growth this year.
