The June ABI has proven that we still have not been able to shake the weak activity of May - the score capped out at 45.9 from 45.8, marking the third month in negative territory. The market continues to show a drop in demand across all design services, in all regions. The poor conditions suggest upcoming weakness in spending on nonresidential construction projects, as each sector of construction shows negative growth commercial/industrial 46.9, institutional 46.0, and mixed practice 45.9. “The downturn in design activity that began in April and accelerated in May has continued into June, likely extending the weak market conditions we’ve seen in nonresidential building activity ,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “While not all firms are experiencing negative conditions, a large share is still coping with a sluggish and erratic marketplace.”
Sorry for such harsh news to start the work week – but if it is any consolation, there’s always next month….and, the Olympics begin Friday.