(07-20-18)
Architecture firm billings increased for the ninth consecutive month in June. Although the ABI score of 51.3 indicates that fewer firms reported an increase in billings than in May, which had a score of 52.8, billings still remain strong overall (any score over 50 indicates billings growth). In addition, the value of new design contracts at firms strongly increased for the second month in a row, and firms continued to report robust backlogs of 6.3 months for the second consecutive quarter. This remains the strongest that backlogs have been since the recession.
Regionally, architecture firm billings were more variable in June. Billings have declined modestly for the last three months at firms located in the Midwest, and have also dropped at firms located in the West. Only firms located in the South have seen consistently strong billings throughout the year so far. Billings are also robust at firms with a residential specialization, as well as those with a commercial/industrial specialization. The pace of growth slowed modestly at firms with an institutional specialization in June but still remains generally strong, as firms with this specialization have not reported declining billings for more than a year and a half. In the broader economy employment gains remain strong, with nonfarm payroll employment adding 213,000 new positions in June for total growth of 2.4 million new positions over the last year. Construction employment continued to grow as well, adding 13,000 new jobs in June for a total of 282,000 over the last year. And architectural service employment gains remain solid as well, with 900 new positions added in May (the most recent data available) for a total of nearly 10,000 new positions added over the last 12 months. The job outlook for the next six months was also one of the high points from the Conference Board’s Consumer Confidence Index in June. While the overall index declined modestly from May, and the short-term outlook for the next six months fell, consumers reported that they have increased optimism about job gains for the remainder of 2018.