AIA/Deltek ABI signaling market stabilization with near flat billing activity

The AIA/Deltek Architecture Billings Index (ABI) scored 49.8, reflecting near-equal shares of firms reporting increases and decreases. This marks the closest the index has come to the 50-point growth threshold since early 2023, offering cautious optimism.

New project inquiries rose steadily, and firm backlogs averaged 6.6 months, the highest since December 2023. Multifamily residential backlogs grew from 5.4 months in December to 6.2 months in March, while institutional backlogs remained steady at 8.2 months. However, design contracts declined for the 25th consecutive month, with the slowdown worsening from February.

Regionally, the West saw its first billing increase since December 2024, while other regions, particularly the Northeast, faced softer conditions.

“While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery,” said AIA Chief Economist, Richard Branch. “These external issues will have a significant impact on the health of construction activity in both the near and long term.”

Key ABI highlights for March include:
•    Regional averages: West (50.6); Midwest (49.4); South (48.5); Northeast (44.2)
•    Sector index breakdown: institutional (52.6); commercial/industrial (52.5); multifamily residential (50.9); mixed practice (firms that do not have at least half of their billings in any one other category) (40.7)
•    Project inquiries index: 56.8
•    Design contracts index: 47.8

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

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