Architecture Firm Billings Continue to Decline; Broader Economy Remains Generally Positive
Washington, DC – The AIA/Deltek Architecture Billings Index (ABI) continues to weaken, posting a score of 45.5 for February, indicating that a majority of firms are still experiencing declining firm billings. The comparable number for
January was 45.6. Any score below 50.0 indicates decreasing business conditions.
For the first time since the peak of the pandemic in 2020, February saw a drop in inquiries for new projects, typically a steady indicator of potential opportunities even during economic slowdowns. Adding to the strain, new signed design contracts have
decreased for the twelfth consecutive month, reflecting client hesitation to commit amidst ongoing economic uncertainty. Billings remained soft in all regions of the country in February, with business conditions also weak across firms of all specializations.
"Conditions in the broader economy were generally positive in February, with the Consumer Price Index (CPI) increasing by only a modest amount, long-term interest rates easing from January levels, and healthy job growth,” said AIA Chief Economist,
Kermit Baker, Hon. AIA, PhD. “However, uncertainty surrounding the impact of recently announced tariffs may lead to a rise in building material prices in the coming months while immigration policy may put even more pressure on an already undersupplied
construction labor market."
Key ABI highlights for February include:
• Regional averages: West (48.1); South (47.6); Midwest (45.2); Northeast (41.3)
• Sector index breakdown: commercial/industrial (46.9); institutional (46.4); multifamily residential (46.1); mixed practice (firms
that do not have at least half of their billings in any one other category) (42.1)
• Project inquiries index: 47.8
• Design contracts index: 42.0
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.