Encouraging Signs Seen In AIA Billings Index For November

Washington, DC – The American Institute of Architects' AIA/Deltek Architecture Billings Index (ABI) remained below 50 for the fourth consecutive month in November, 2023. The score of 45.3 increased by one point from October, indicating slightly fewer firms reporting a decline in billings. The report also found inquiries for future projects rising.    

“This marks the seventh month in 2023 with a decline in billings. Over the past three months this pace of decline has accelerated, with firms in all specializations and in all regions of the country reporting weakening business conditions,” said Kermit Baker, PhD, AIA Chief Economist. "However, with signs that credit conditions are beginning to ease, firms are reporting an uptick in inquiries for future projects.”  

Firms in all regions reported a decline in billings, with business conditions remaining softest at firms located in the West as the region’s billings hit a low for the year. Firms specializing in multi-family residential continue to remain the weakest and business conditions declined further at firms with institutional specialization, despite being the strongest to start 2023.  

The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-twelve-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.

Key ABI highlights for November include:

• Regional averages: Northeast (44.4); Midwest (49.0); South (46.7); West (39.5)

• Sector index breakdown: commercial/industrial (45.7); institutional (46.6); mixed practice (firms that do not have at least half of their billings in any one other category) (42.7); multifamily residential (42.1)

• Project inquiries index: 56.9

• Design contracts index: 48.1

The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

About The American Institute Of Architects

For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. For more information, visit www.aia.org.