The AIA/Deltek Architectural Billings Index (ABI) remains in contraction, recording 48.3 in April 2024. Above or below 50 indicates an increase or decrease in architectural billings, respectively, and the ABI has now scored under 50 for 15 consecutive months.

Dodge Construction Network’s (DCN) Momentum Index (DMI) reduced by 1.0 percent on the year in April 2024, although gains were seen on the month, supported by data center planning activity. Construction starts recorded by DCN improved slightly, growing by 6.0 percent on the month in April 2024 - despite the first few months of the year seeing reductions.

Confidence, however, has improved. Engineering News Record’s (ENRs) Confidence Index shot up to 52.0 in Q1 2024, rising by 10 points. The Construction Financial Management Association’s (CFMA) Confidex Index also improved, moving from 96.0 in Q4 2023 to 109.0 in Q1 2024.

The construction market data suggests a softening trend over the next six to nine months. While it does not necessarily indicate reduced activity levels, there will likely be a slower pace of growth. Despite this, optimism remains, and there’s potential for longer-term gains in activity levels. However, cost pressures are expected to persist as activity continues to increase.