Q3 2024: Industry

Oct 16

The total DMI* for July 2024 rose 7.9% from June continuing the upswing since Q2.

-Richard Branch, chief economist for Dodge Construction Network [1]

Monthly construction spending peaked around April of this year and slowed down through Q2. [2]

The American Institute of Architects published their
latest ABI* score for July, 2024 which shows a very
slight increase in score from May & June. Any score
below 50 indicates a decline in billings. July marked
the eighteenth consecutive month of declining
billings for architecture firms, according to the latest
data from the AIA/Deltek Architecture Billings Index
(ABI). While the ABI score of 48.2 indicates that
fewer firms reported declines in billings compared to
June, over half of the responding firms continue to
navigate challenging business conditions. [3]

ABI Regional Averages July 2024:

1. Northeast 50.0

2. Midwest: 47.6

3. South: 46.3

4. West: 46.0

(note: the western regions have not recorded a score over 50 since Feb 2023)

* The DMI is a monthly measure of the value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year.

* The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-twelve-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.

[1] Dodge momentum index expands another 8% in July. Dodge Construction Network. (2024, August 7). https://www.construction.com/company-news/dodge-momentum-index-expands-another-8-in-july/ 

[2] Total construction spending: Total construction in the United States. FRED. (2024, August 1). https://fred.stlouisfed.org/series/TTLCONS

[3] Soft business conditions persist at architecture firms, AIA/Deltek Abi finds. The American Institute of Architects. (2024, August 21). https://www.aia.org/about-aia/press/soft-business-conditions-persist-architecture-firms-aiadeltek-abi-finds