Building Products - ABI Falls in May; Still in Contraction Territory

Research evidence excerpt

Building Products - ABI Falls in May; Still in Contraction Territory

Truist Securities

Equity Research Report June 24, 2026

INDUSTRIALS: Building Products/

Durable Goods Building Products - ABI Falls in May; Still

in Contraction Territory

The Architectural Billings Index moved lower to 44.5 in May, after what has been a Keith Hughes choppy m/m cadence. Note March saw the highest reading since October 2024, where

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Keith.Hughes@truist.com the index briefly climbed into expansion territory, but it has since tapered off. Results

among sectors were mostly negative other than mixed use with regional readings seeing

growth in the Northeast and South. Project inquiries declined sharply after achieving Julian Nirmal the highest levels seen since February 2024. 404-836-4749

Julian.Nirmal@truist.com

The American Institute of Architects' (AIA) Architecture Billings Index (ABI) is a measure

4 Page Document of future activity in construction areas outside single-family home construction. It

works on an index, with readings above 50 indicating expansion and below indicating

contraction. It is normally a read for activity 9 to 12 months away. Note that it does not

Reasons for this report track heavy industrial work well.

✓ Quick Reaction to Newsflow/Volatility Billings Index Moves Lower in May. The May ABI saw a reading of 44.5, down from the

✓ Industry Data Relevant to Our Coverage April result of 48.3. This continues the pattern of choppy m/m growth. Project inquiries

declined substantially to 49.4 from 57.7, falling sharply after reaching its highest level

seen since February 2024.

Sector Results Mixed and Fall Back into Contraction Territory. Results were higher

in only 1 of the sectors (which are calculated on a 3-month moving average), with