Architects remain optimistic about future workloads, but optimism is falling.
After an uptick in confidence last month, the longer-term trend of moderating confidence has returned in June.
In June, the RIBA Future Trends Workload Index fell by nine points to a balance figure of +4.
Whilst architects remain confident about future workloads, confidence is at its lowest level since January 2021.
Twenty-two per cent of practices expect workloads to increase in the coming three months, whilst sixty per cent expect them to remain the same. Eighteen per cent of practices expect workloads to decrease.
Levels of confidence differ by practice size. Medium and large-sized practices remain firmly optimistic about future workloads, but small practices have become pessimistic. With a negative balance figure this month, more small practices expect workloads to fall than rise.
Confidence has fallen within all the monitored work sectors. Whilst, on balance, workloads are anticipated to grow within the housing sector, they are anticipated to fall in the commercial, community and public sectors. Across most regions confidence has fallen. For the first time since February 2021, London has returned a negative RIBA Workload Index figure.
Whilst confidence about future work is waning, current workloads look to be holding up. Those reporting personal underemployment in the last month are at an all-time low of 8%. Actual workloads remain at the same level as a year ago, when the RIBA Future Trends Workload Index exceeded +25.
Since a post lockdown peak of +31 in June last year, the index has fallen by 27 balance points. This month sees practices having the lowest level of confidence since the end of Covid restrictions in early 2021. However, whilst confidence about future work is weakening, current workloads look to be holding up. Overall, practices report having as much work now as they did last year. The number reporting personal underemployment is lower than it has ever been.
With ongoing and well-founded concerns about the future of the UK economy, and reports of fewer new enquires, architects are looking ahead, and future work is looking less assured than it was a year ago. The commentary received in June reflects this decreasing levels of optimism among architects.
Whilst practices report strong levels of current work, as previously acquired commissions are delivered, new enquires and new commissions are reported to be decreasing for some.
