In its May Architecture Billings Index (ABI), the AIA shared that billings have “remained in negative territory” with a score of 47.2, up from 43.2 in April. Any number below 50 indicates a decrease in billings from the previous month.

There is reason for hope, however: For the first time since January, inquiries into new work increased, AIA shared. This suggests a “modest degree of stabilization” in the economy, AIA continued.

Still, the value of signed design contracts continues to decline. “Business conditions remained sluggish nationwide in May, with nonresidential construction activity continuing to decline in several major metro areas,” said AIA Chief Economist Kermit Baker.

“Firms across all specializations reported declining billings this month,” Baker added. “However, the pace of decline slowed at firms specializing in multifamily residential projects. These, along with institutional work, are likely to be the first to return to growth when conditions begin to improve.”

The AIA included “resources to help architects successfully navigate an uncertain economy” in its May report, as it did in April’s report. Regionally, all parts of the country are reporting drops in billings, although the South fared the best overall.

The Midwest had the lowest score at 43.5. The Northeast did marginally better at 43.6. The West: 44.3. The South remains the region with the lowest rate of decline, and highest score, reporting 49.2 for May.

Firms specializing in institutional work had a score of 46.2 for May. Practices active in the multifamily residential sector reported a 46.1 score. Mixed practice firms, or those that do not have at least half of their billings in any one other category, reported a 45.2. Commercial and industrial sector firms saw a 43.8.

How will June perform? It remains to be seen, although the White House’s decision last week to raise steel and aluminum tariffs by 50 percent may impact the next ABI.

It is possible the market can turn and avoid a massive slowdown. I wonder if all the tariff rush brought demand forward a bit to have this slowing of Arch Billings decline slower than usual. I’m curious what the June Print will be.