WASHINGTON, DC-The Architecture Billings Index,which reflects the approximate nine to twelve month lag timebetween architecture billings and construction spending, posted aJune score of 45.9, which is nearly identical to the 45.8 it postedin May. The new projects inquiry index was 54.4, up slightly from54 the previous month.
“The downturn in design activity that began in April andaccelerated in May has continued into June, likely extending theweak market conditions we’ve seen in nonresidential buildingactivity,” said AIA Chief Economist Kermit Baker,in a prepared statement. “While not all firms are experiencingnegative conditions, a large share is still coping with a sluggishand erratic marketplace.”
In general, economic indicators—both industry-specific andmacroeconomic—are not trending well for commercial real estate. Atthe beginning of the month, the Labor Department reported that amere 80,000jobs had been created—a worrisome figure for office investorsand owners.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
