The Royal Institute of British Architects’ (RIBA) monthly Future Trends workload index – a tool used to measure RIBA members’ confidence in the market for architectural services – dipped significantly in June 2017, falling to +10 (down from +23 in May 2017).
Practices in the North of England – with a balance figure of +35 – continued to be more positive about future work prospects than those in London, a trend seen since the UK referendum on membership of the EU. Confidence in London practices fell into negative territory (balance figure –3).
Large practices (51+ staff) were the most optimistic, with a balance figure of +18, compared with small practices (1–10 staff, balance figure +8) and medium-sized practices (11–50 staff, balance figure +14).
The private housing sector forecast dropped significantly, though remains the strongest of the sector forecasts (balance figure +12). The outlook for the commercial sector also dipped (standing at +4 in June), while the public sector (–6) and community sector (–7) fell further into negative territory.
The Future Trends staffing index dropped slightly in June 2017 to +6 (down from +7 in May 2017). Nevertheless 84% of practices expect permanent staffing levels to remain the same or increase in the next quarter.
Large practices and medium-sized practices remain optimistic about increasing staffing levels in the medium-term (balance figures +18 and +21 respectively), with small practices significantly less confident (balance figure +3).
RIBA Executive Director Members, Adrian Dobson, said: “Commentary from responding practices suggests that the fall in confidence levels in June was largely driven by concern about macro-economic uncertainties, which appear to have been intensified by the General Election outcome and the start of Brexit negotiations, rather than a dramatic change in workloads or the level of project enquiries. Time will tell whether this proves to be a temporary dip or an ongoing trend.
“Meanwhile, the private housing sector continues to be buoyed partly by on-going strength in the bespoke homes and domestic extension market for small practices. Overall, salaried architects appear to remain in demand in the employment market.”
