AIA Survey Shows Billings Declining, New Project Inquiries Rising In December

Washington, DC – Architecture firms reported a significant decline in billings in December as the AIA/Deltek Architecture Billings Index (ABI) fell from 49.6 in November to 44.1 in the final survey of 2024. Any score below 50.0 indicates decreasing business conditions.

The stable level of billings seen in October and November stalled and headed down again to end the year. Inquiries into new projects did continue to increase at a relatively slow rate, but the value of newly signed design contracts decreased further in December. November's design contracts value number was 48.3 while December was 45.5.

“While there were signs that the design cycle was bottoming out in the fourth quarter, the December reading indicated a step back,” said Kermit Baker, PhD, AIA Chief Economist. “There remains considerable uncertainty as to the feasibility of many planned construction projects, so the wait-and-see period is extending into 2025.”

An outlier to the findings was firms located in the West. They reported growth for the third consecutive month in December. All other regions, particularly at firms in the Northeast, reported softer business conditions. Firms with an institutional sector show opportunities for growth, as they have for several months.

Key ABI highlights for December include:
•    Regional averages: West (52.2); South (47.2); Midwest (46.4); Northeast (41.7)
•    Sector index breakdown: multifamily residential (46.5); institutional (49.8); commercial/industrial (44.1); mixed practice (firms that do not have at least half of their billings in any one other category) (46.0)
•    Project inquiries index: 51.6
•    Design contracts index: 45.5

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

Visit AIA’s website for detailed information about this, and past billing index reports.

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.