Architectural market remains fragile – RIBA Future Trends survey June 2019

In June 2019 the RIBA Future Trends Workload Index increased to +9, after remaining steady at +5 for three consecutive months. The North of England was especially positive at +39, continuing its run of returning the highest balance figure of any region. The South of England showed increased optimism, increasing by 16 points to +19; Wales and The West also had a positive outlook (+13).

Practices in London were more pessimistic about future workloads than other areas, as the balance figure fell to -8, while Midlands and East Anglia has remained at the same level, returning a balance of zero.

Large practices (51+ staff) showed the highest increase in confidence in June, returning a balance of +33, up from +20 the previous month. Medium-sized practices (11 to 50 staff) continued to be positive, returning a figure of +30 and small practices (1 to 10 staff) recorded a three point rise (+5).

While the private housing sector remains the most resilient reported on (+1), all sectors recorded a decrease and this month’s report suggests a fragility of the market. The commercial sector dropped 4 points this month (to zero), the community sector remains at -4 and the public sector slipped back to negative territory (-2).

The RIBA Future Trends Staffing Index increased to +2 this month.

RIBA Head of Economic Research and Analysis, Adrian Malleson, said:

“The commentary from practices this month focuses largely on the fragility of the current architectural climate. Some drew attention to Brexit creating an unpredictable market, in which it is increasingly difficult for both clients and architects to make, and commit to, business plans. However, with a focus on quality work and the international market, many practices continue to thrive.”

ENDS

Notes to editors:

1. For further press information contact Emily.Stallard@riba.org +44 (0) 20 7307 3813
2. Completed by a mix of small, medium and large firms based on a geographically representative sample, the RIBA Future Trends Survey was launched in January 2009 to monitor business and employment trends affecting the architects’ profession.
3. The Future Trends survey is carried out by the RIBA in partnership with the Fees Bureau. Results of the survey, including a full graphical analysis, are published each month here.
4. The definition for the workload balance figure is the difference between those expecting more work and those expecting less. A negative figure means more respondents expect less work than those expecting more work. This figure is used to represent the RIBA Future Trends workload index.
5. The definition for the staffing balance figure is the difference between those expecting to employ more permanent staff in the next three months and those expecting to employ fewer. A negative figure means more respondents expect to employ fewer permanent staff. This figure is used to represent the RIBA Future Trends staffing index.
6. To participate in the RIBA Future Trends Survey, please contact the RIBA Practice Department on 020 7307 3749 or email practice@riba.org. The survey takes approximately five minutes to complete each month, and all returns are independently processed in strict confidence.
7. The Royal Institute of British Architects (RIBA) is a global professional membership body that serves its members and society in order to deliver better buildings and places, stronger communities and a sustainable environment. Follow @RIBA on Twitter for regular updates