Business conditions at architecture firms continues to decline

Business conditions at architecture firms continues to decline
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Date: 21 May 2025

The AIA/Deltek Architecture Billings Index (ABI) dropped to 43.2 in April, down from 44.1 in March. This decline reflects an accelerated decrease in billing activity.

The AIA/Deltek Architecture Billings Index (ABI) dropped to 43.2 in April, down from 44.1 in March. This decline reflects an accelerated decrease in billing activity.

Billings have decreased in 28 out of the past 31 months, following their initial drop into negative territory after the post-pandemic boom. New project inquiries decreased for the third month in a row in April, and the value of new design contracts has declined at the majority of firms for 14 consecutive months.

“Uncertainty as to the economic outlook continues to hold back progress on new construction projects,” said Kermit Baker, PhD, AIA Chief Economist. “Despite the slowdown in billing activity, architecture firms continue to navigate this business cycle quite effectively, as staffing at firms remains relatively stable and project backlogs are holding up better than expected.”

Business conditions at architecture firms continues to decline

Key ABI highlights for April include:
•    Regional averages: South (46.2); Midwest (44.4); West (42.1); Northeast (40.2)
•    Sector index breakdown: institutional (46.3); mixed practice (firms that do not have at least half of their billings in any one other category) (47.6); commercial/industrial (40.5); multifamily residential (40.8)
•    Project inquiries index: 48.0
•    Design contracts index: 43.3

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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