Archinect - News

November's AIA/Deltek Architecture Billings Index nearly flat for second month in a row

2024-12-18T12:54:00-05:00

The latest AIA/Deltek Architecture Billings Index (ABI) for November has recorded a second consecutive flat reading. The slight decrease to 49.6 indicates a near-equal balance between the number of firms experiencing a decrease in billings versus those seeing increases. Inquiries into new work continued to grow, while the value of newly signed design contracts declined for the eighth month in a row.

"Given the extended weakness in business conditions at architecture firms, increasing firm profitability remains the top concern for 2025, with one-third of firm leaders selecting it as a major issue—the highest since 2017," Kermit Baker, the AIA's Chief Economist, said in a statement.

"Negotiating appropriate project fees ranked second, chosen by 21 percent, while 20 percent identified finding new clients and markets or improving business planning and marketing as a top concern, up from 18 percent last year," his statement continued.

Related on Archinect: Architecture Business Metrics ...

AIA/Deltek Architecture Billings Index remains flat in October, ending 20-month streak of declines

2024-11-20T12:31:00-05:00

The new AIA/Deltek Architecture Billings Index (ABI) for the month of October has recorded a flat (50.3) reading, ending its 20-month streak of consecutive declines. This score indicates a balance between the number of firms experiencing a decrease in billings and those seeing an increase, according to the AIA. Inquiries into new projects in October also picked up to their highest level in six months.

"Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025," said the AIA's Chief Economist, Kermit Baker. "Overall, 41 percent of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32 percent projecting growth in the 5 percent to 9 percent range."

October ABI Highlights

Regional averages: Northeast (45.6); South (52.1); Midwest (46.9); West (47.6)
Sector index breakdown: institutional (50.5); multifamily residential (45.6); commercial/industrial (47.0); mixed practice (48.0)
Project inquiries index: 54...

Architecture business conditions worsened in September, says AIA/Deltek Architecture Billings Index

2024-10-23T11:47:00-04:00

The latest AIA/Deltek Architecture Billings Index has shown a continued decline in billings through last month. The September ABI remains at 45.7, where it also sat in August. Any score below 50.0 indicates a decline. The findings mark the twentieth consecutive month of declines in the ABI index.

“Despite recently announced rate cuts by the Federal Reserve, clients are still cautious about future projects,” the AIA notes about the latest figures. “Inquiries into potential new projects continued to increase, but the pace has slowed since the beginning of the year. And the value of newly signed design contracts at firms decreased for the sixth consecutive month in September, although the pace of that decline has moderated somewhat over the last few months.”

“However, firms continue to report average backlogs of 6.4 months, which remains above pre-pandemic historical averages and is a good indicator of existing work in the pipeline, even if new work coming in has slowed,” the AIA adds...

AIA/Deltek Architecture Billings Index drops again in August for 19th consecutive month

2024-09-18T12:10:00-04:00

The newest AIA/Deltek Architecture Billings Index reporting has shown a continued stasis of weak conditions for firms nationally. The August ABI is now 45.7, down from the 48.2 figure that was recorded for July (any score below 50.0 indicates a decline). This is now the nineteenth consecutive month of declines in the ABI index.

"Unfortunately, even the impending interest rate cuts didn’t move the needle on project inquiries or new design contracts at architecture firms. Hopefully, once the trajectory of further cuts gets clarified, delayed projects will restart, and new projects will gather momentum," the AIA’s Chief Economist Kermit Baker says of the findings:

August ABI Highlights

Regional averages: Northeast (48.2); South (46.8); Midwest (46.6); West (45.7)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (48.6); institutional (47.4); commercial/industrial (46.6); multifamily residential (44.0)
Project inqui...

July's Architecture Billings Index remains depressed as decline rates slow

2024-08-21T11:56:00-04:00

The latest AIA/Deltek Architecture Billings Index (ABI) for July has shown a continued state of soft business conditions at firms across the country, with a score of 48.2. This constitutes fewer reported declines and a minor improvement over June’s score of 46.4. Contracts decreased for the fourth consecutive month while, conversely, the rate of decline has slowed. The AIA notes that inquiries into new projects have also increased, albeit at a continued slow pace.

"Architecture firms continue to face a billings slowdown,” Kermit Baker, the Chief Economist for the AIA, states. “However, the emerging prospects of lower interest rates coupled with a modest uptick in project inquiries suggest that some dormant projects may be revived in the coming months.”

The question of interest rates factored heavily into our recent Archinect Business Survey. Notably, firms in the Northeast U.S. experienced sta...

June Architecture Billings Index remains down despite slight improvement

2024-07-24T13:41:00-04:00

The latest AIA/Deltek Architecture Billings Index (ABI) for June has indicated a continuation of soft business conditions for firms, with a new recorded score of 46.4 (any score below 50 indicates a decline).

The number is slightly higher than May's score of 42.4, which represented a new post-pandemic low. The June data is augmented by other reported economic facts, including that the project pipeline is at its lowest point in three years (6.4 months on average).

"Architecture firms continue to face a period of headwinds in the construction sector, driven by elevated interest rates, high construction costs, and generally weak property values," AIA Chief Economist Kermit Baker commented on the June ABI. "This is the seventeenth consecutive month of a billings decrease, and yet, despite the softness, firms remain generally optimistic that conditions will start to improve once interest rates begin to ease."

May Architecture Billings Index drops to new post-pandemic low

2024-06-26T12:45:00-04:00

The latest economic data revealed by the new AIA/Deltek Architecture Billings Index for May has indicated a sharp decline to a score of 42.4, representing a new low point for the index after a year and a half of weak performances.

"The decline in the May ABI score continues a year and a half of weakness in design billings at U.S. architecture firms. However, firms only reported modest declines over the first half of this period. Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession," Kermit Baker, the AIA's Chief Economist, noted in a statement about the latest figures.

The report points out that this is the fourth consecutive month in which declines have been posted in every region, with particularly weak conditions reported for the Midwest.

May ABI Highlights

Regional averages: Northeast (47.7); Midwest (41.7); South (46.0); West (46.3)
Sector index breakdown:...

April's Architecture Billings Index shows business conditions for firms remaining soft

2024-05-22T12:59:00-04:00

The new AIA/Deltek Architecture Billings Index (ABI) for April has reported a new score of 48.3, indicating a continued decrease in economic activity while posting an improvement over March’s previously reported total of 43.6. For the month, inquiries into new projects continued to increase slightly despite a decrease in the total value of newly signed design contracts.

The AIA notes an increase in the number of firms pursuing international projects, with 9% of responding firm leaders indicating they currently have billings overseas. This news comes on the heels of the Federal Reserve’s decision not to lower interest rates earlier in May. The demand for architecture services employment is now at its lowest level since December.

The AIA says: "Firms had hoped that the Federal Reserve would start lowering interest rates this spring and that would open new work, but with that decrease now likely on hold until late summer or early fall, firms may have some more slow months ahead of th...

March Architecture Billings Index declines significantly due to inflation and supply chain issues

2024-04-24T13:23:00-04:00

The AIA/Deltek’s latest Architecture Billings Index (ABI) for the month of March has posted a decline to a score of 43.6. The new figures indicate a reversal of February’s “most modest easing.”

The AIA says: "This shows that clients are interested in starting new projects but remain hesitant to sign a contract and officially commit to those projects. However, most firms report that they still have strong project backlogs of 6.6 months, on average, so even with the ongoing soft patch, they still have work in the pipeline."

There were a number of revealing statistics included in the ABI report, which recorded responses from a special practice questions survey, including (among others) the ease at which design contracts are being negotiated when compared to the experiences of firm leaders within the industry just 4 to 5 years ago. 46% now report having a "more challenging" time negotiating their design fees versus the pre-pandemic time period, with another 14% saying that it was "much...

February Architecture Billings Index softens decline, shows encouraging signs of economic turnaround

2024-03-20T12:38:00-04:00

New data from the AIA/Deltek Architecture Billings Index (ABI) for the month of February has revealed a continued decline to a new score of 49.5. The figure, however, represents the "most modest easing" since July 2023 (any score below 50 indicates a decline), suggesting an improvement over the economic downturn of last year.

"There are indicators this month that business conditions at firms may finally begin to pick up in the coming months. Inquiries into new projects grew at their fastest pace since November, and the value of newly signed design contracts increased at their fastest pace since last summer," Kermit Baker, the AIA’s Chief Economist, said of the data. "Given the moderation of inflation for construction costs and prospects for lower interest rates in the coming months, there are positive signs for future growth."

For the month, firms in the Midwest region showed a continued growth in billings for what is now the fourth out of the last five consecutive months.

February ...

January Architecture Billings Index increases slightly while soft business conditions remain

2024-02-21T13:39:00-05:00

The latest data contained in the AIA/Deltek Architecture Billings Index (ABI) for the month of January has shown a slight increase from December's 45.4 total to a new score of 46.2, signaling a continued weakening in business conditions as we enter 2024 following a year of heavy economic turbulence for the industry. (Any score below 50 indicates decreasing business conditions.)

For the month, indicators remained poor in all areas except the Midwest (which has performed well since the fall). Multifamily residential specialty firms continue to report the softest business conditions of all project types and categories. The AIA did, however, point out several other silver linings that can be taken from its report.

"This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January," Kermit Baker, the AIA’s Chief Economist, said in a statement. "Firms are seeing...

December Architecture Billings Index declines slightly to cap a challenging economic year for firms

2024-01-24T12:38:00-05:00

The new December Architecture Billings Index from the American Institute of Architects has shown a continued decline in business conditions to end the year 2023. The new index score of 45.4 was essentially left flat from November’s totals (any score below 50 indicates a decline) though there remained a few encouraging statistics within the production pipeline.

The findings cap a difficult economic year for architecture firms, which experienced suppressed conditions in all sectors (especially multifamily residential) for the balance of the year. The AIA says additionally that most firms report projects have been significantly delayed, put on hold, or even canceled in the past six months. On average, the report states, nearly 30% of projects have fallen into one of these categories.

“Billings at firms declined for eight months of the year, and the last four months saw this overall weakness accelerate,” Kermit Baker, the AIA’s Chief Economist, said. “Fortunately, project backlogs at fi...

Economic Pressures and Labor Challenges: How 2023 Shaped Architecture and Construction Industries

2023-12-28T07:49:00-05:00

The architecture industry was impacted this year by market volatility, rising interest rates, and evolving labor dynamics. This unusual business climate was reflected not only in the Architecture Billings Index (ABI) and the Dodge Momentum Index (DMI) but also in the pattern of job openings around the country, also observed through Archinect Jobs, the leading job board for the architecture industry in the USA.

AIA predicts slower growth in non-residential construction through 2023 and 2024

Hints of 2023's challenges began in late 2022, with a downturn in both the ABI and DMI to kick off 2023. This signaled a cautious approach by firm owners and clients alike amidst tightening credit conditions and rising interest rates. This recessed business landscape was quickly echoed in the job market, as seen by a substantial 51.9% decrease in job advertising volume in January 2023 compared to January 2022. This trend of reduced job postings continued throughout the year, with monthly declines r...

November Architecture Billings Index remains below 50 for the fourth consecutive month

2023-12-20T13:31:00-05:00

The American Institute of Architects has released new Architecture Billings Index data for the month of November, indicating a further softening of business conditions with a score below 50 recorded for what is now the fourth month in a row.

The new 45.3 score for the month is still a full point higher than October’s total. The AIA says firms in the West region were the most impacted, reaching new lows for the calendar year. Multi-family residential specialty firms remained among the hardest-hit operations, along with architects working heavily in the institutional sector.

“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,” the AIA’s Chief Economist Kermit Baker said in a press release. “However, with signs that credit conditions are beginning to ease, firms are reporting an uptick in inquiries...

October Architecture Billings Index drops below 50 for third consecutive month

2023-11-15T12:44:00-05:00

The newly-released Architecture Billings Index from the American Institute of Architects has indicated a significant decline in billings after posting a total score under 50 for the third month in a row.

The October score of 44.3 offers a slight decrease from September’s total of 44.8. The West and Northeast regions were reporting the biggest impact. The AIA stated that billings were, however, “universally soft” across the entire country.

“This report indicates not only a decrease in billings at firms but also a reduction in the number of clients exploring and committing to new projects, which could potentially impact future billings. The soft conditions were evident across the entire country as well as across all major nonresidential building sectors,” Kermit Baker, the AIA’s Chief Economist, said in a press release.

October ABI Highlights

Regional averages: Northeast (42.1); South (48.5); Midwest (48.9); West (40.0)
Sector index breakdown: commercial/industrial (43.7); institutiona...

Architecture Billings Index declines sharply in September, indicating a 'marked downturn' in demand for design services

2023-10-18T13:10:00-04:00

The latest Architecture Billings Index from the American Institute of Architects for the month of September is showing declines for a second consecutive month to a total score of 44.8 (any score above 50 indicates an increase) following a brief period of stabilization that occurred over the summer.

The new score was also reported by the AIA as the lowest figure recorded since the height of the pandemic in December 2020. Every sector except for institutional, which remained flat, posted declines in the demand for design services. The West region was particularly impacted, the AIA noted. The multifamily sector’s declines also offered a continuation of a trend that began in August of 2022.

"The September ABI score reflects a marked downturn in business conditions at architecture firms, with the sharpest decline observed since the peak of the pandemic," said Kermit Baker, PhD, AIA Chief Economist. "While more firms are reporting a decrease in billings, the report also shows the hesita...

August’s Architecture Billings Index drops slightly, driven by declines in multifamily and institutional contracts

2023-09-20T12:42:00-04:00

The American Institute of Architects' latest Architecture Billings Index for August has recorded a slight decrease to a score of 48.1 (any score above 50 indicates an increase), marking the eleventh month of consecutively flat figures for firms following a period of growth between 2021 and mid-2022.

The value of new design contracts also dropped for the first time since April. The multifamily market maintained its relatively poor performance, with the institutional sector likewise recording a decline. Firms specializing in commercial/industrial projects, however, reported increases for the third month in a row.

“Business conditions at architecture firms continue to be sluggish,” Kermit Baker, the AIA’s Chief Economist, said in a statement. “New project work coming into architecture firms as well ongoing project activity remain stalled in a relatively narrow range and exhibit very little month-to-month variation. Though this pause has taken pressure off tight staffing conditions acr...

July's Architecture Billings Index figures stabilize for the third month in a row

2023-08-23T18:20:00-04:00

The American Institute of Architects has just released its Architecture Billings Index for the month of July, highlighting further stability in the demand for design services for the third month in a row.

The index score was recorded at 50.0, indicating a flat figure (anything above 50.0 is considered an increase) that follows June’s total of 50.1. The score reflects an increased demand from firms specializing in commercial/industrial projects, which helps bolster the index against declines that were recorded across the residential sector.

“This is the third straight month that billings at architecture firms have stabilized,” the AIA’s Chief Economist Kermit Baker said. “New project work has been even stronger over this period. This suggests that design work may finally begin to increase over the coming months, although somewhat modestly.”

July ABI Highlights

Regional averages: Midwest (51.6); West (49.6); Northeast (49.3); South (48.9)
Sector index breakdown: commercial/industrial (...

Stable demand for architecture services in June, says AIA Architecture Billings Index

2023-07-20T11:23:00-04:00

The latest billings data from the American Institute of Architects has found there to be a stable demand for design services across June 2023. The latest figures represent the first time since Fall 2022 that billings remained in positive growth for two consecutive months, indicating that design activity is continuing to slowly recover from turbulent economic conditions.

According to the latest Architecture Billings Index from June, the billings score was 50.1, down marginally from 51.0 in May (a score above 50 indicates an increase in billings). Inquiries into new projects continued to post a positive score of 56.7, though down from May’s 57.2, while new design contracts edged upward to 52.7 in June from 52.3 in May.

June ABI Highlights

Regional averages: Midwest (52.4); Northeast (50.6); South (50.5); West (48.6)
Sector index breakdown: institutional (55.4); mixed practice (firms that do not have at least half of their billings in any one other category) (48.8); commercial/industria...

Rebound in demand for design services in May, says AIA Architecture Billings Index

2023-06-21T14:43:00-04:00

The latest billings data from the American Institute of Architects has found there to be a rebound in the demand for design services across May 2023. The index score in May was the highest it has been since September 2022, while inquiries into new projects and design contracts reached their highest levels since February.

According to the latest Architecture Billings Index from May, the billings score was 51.0, up from 48.5 in April (a score above 50 indicates an increase in billings). Inquiries into new projects continued to post a positive score of 57.2, up from April’s 53.9, while new design contracts entered positive territory with a score of 52.3, up from 49.8 in April.

May ABI Highlights

Regional averages: South (52.3); Midwest (49.6); Northeast (48.7); West (47.7)
Sector index breakdown: institutional (53.4); mixed practice (firms that do not have at least half of their billings in any one other category) (52.7); commercial/industrial (47.5); multi-family residential (43.0)

"The...

Architecture Billings Index for April indicates slight decrease despite upticks in future project inquiries

2023-05-24T12:25:00-04:00

New statistics from the American Institute of Architects' latest Architecture Billings Index (ABI) show a modest decrease for April, following the gains shown by the ABI in March for the first time since September.

The billings score for April dropped to 48.5, down from the March total of 50.4 (any score above 50 indicates an increase). Firms did report, however, that new project inquiries increased to a score of 53.9, though most practices continued to report a decline in the value of new design contracts to a score of 49.8.

April ABI Highlights

Regional averages: Midwest (51.2); West (49.3); South (48.7); Northeast (47.2)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (52.1); commercial/industrial (51.8); institutional (50.6); multi-family residential (41.5)

“The ongoing weakness in design activity at architecture firms reflects clients’ concerns regarding the economic outlook,” the AIA's Chief Economist Kerm...

March Architecture Billings Index shows an increase for the first time since September

2023-04-19T13:06:00-04:00

New data from the American Institute of Architects' latest Architecture Billings Index (ABI) shows an increase for the month of March, ending a five-month streak of declines in spite of a slight decrease in the overall number of new contracts during the same 30-day period.

The billings score for March increased to 50.4 in March, up from February’s 48.0 figure (any score above 50 indicates an increase). As mentioned, the value of new design contracts declined to 48.9 in March, down from a score of 51.3 that was recorded the month before.

March ABI Highlights

Regional averages: Midwest (51.4); Northeast (49.1); South (47.4); West (47.2)
Sector index breakdown: mixed practice (firms that do not have at least half of their billings in any one other category) (53.9); institutional (48.8); commercial/industrial (49.7); multi-family residential (44.2)

“In spite of the positive movement in architecture firm billings in March, core concerns remain,” the AIA’s Chief Economist Kermit Baker said. ...

The ABI reports demand for design services declined again in February for the fifth consecutive month

2023-03-22T18:32:00-04:00

The latest data from the American Institute of Architects (AIA) has shown a decline for the industry in February, bolstering a downward economic swing that has lasted through the new year as the prospect of a recession grows ever closer.

The Architecture Billings Index (ABI) for the month was at 48.0, down slightly from the 49.3 figure that was recorded for January. New project inquiries did increase, however, along with the overall value of new design contracts. The AIA says these both provide indicators as to improve business performance over the coming months.

With the negative figure (only scores above 50 are considered positive) the ABI has now posted declines from the previous month five times in a row.

February ABI Highlights

Regional averages: West (50.4); Midwest (48.8); Northeast (48.4); South (47.3)
Sector index breakdown: mixed practice (57.0); institutional (46.9); commercial/industrial (45.8); multi-family residential (46.2)

“The combination of an unsettled economy and ...

Demand for design services continued to fall in January, though at a slower rate, says AIA Architecture Billings Index

2023-02-22T13:11:00-05:00

The latest billings data from the American Institute of Architects has found there to be a continued albeit slower decline in the demand for design services across January 2023. The reduction is the fourth month in a row where billings declined versus the previous month.

According to the latest Architecture Billings Index from January, the billings score was 49.3, slightly up from the seasonally-adjusted score of 48.4 in December. A score below 50 nonetheless indicates a decline in billings. Inquiries into new projects continued to post a positive score of 55.2, slightly up from December, while new design contracts entered positive territory with a score of 53.4, up from 50 in December.

January ABI Highlights

Regional averages: South (46.9); Midwest (51.6); West (51.3); Northeast (50.9).
Sector index breakdown: mixed practice (56.0); institutional (48.6); multi-family residential (45.9); commercial/industrial (46.8)

“While the downturn in design activity extended to four months in Jan...

Demand for design services continue to fall in December’s AIA Architecture Billings Index

2023-01-26T11:15:00-05:00

New data from the American Institute of Architects has found there to be a continued decrease in the demand for design services across December 2022, continuing a trend that began two months previously.

According to the latest Architecture Billings Index for December, the billings score was 47.5, slightly up from 46.6 in November. A score below 50 nonetheless indicates a decline in billings. Inquiries into new projects continued to post a positive score of 52.3, although new design contracts remained in negative territory with a score of 49.4.

December ABI Highlights

Regional averages: South (48.8); Midwest (49.4); West (45.5); Northeast (46.5).

Sector index breakdown: mixed practice (54.8); institutional (47.3); multi-family residential (44.3); commercial/industrial (45.2)

“Despite strong revenue growth last year, architecture firms have modest expectations regarding business conditions this coming year,” said AIA Chief Economist Kermit Baker. “With ABI scores for the entire fourth...

November Architecture Billings Index shows demand for design services continues to slow

2022-12-20T14:10:00-05:00

Data taken from the latest American Institute of Architects (AIA) report shows a continued decrease in the demand for design services industry-wide in November as economic concerns for the new year loom.

The new Architecture Billings Index (ABI) score for the month was 46.6, down from October’s 47.7 figure (a score below 50 indicates a decline). New project inquiries managed to stay above the threshold with a score of 52.0, while the requisition of new contacts dipped slightly to a score of 46.9.

November ABI Highlights

Regional averages: South (50.5); Midwest (47.6); West (45.8); Northeast (42.4)
Sector index breakdown: mixed practice (51.5); institutional (47.7); multi-family residential (46.1); commercial/industrial (44.2)

“Given the slowdown in new project work, many architecture firms will rely on their near record levels of backlogs to support revenue,” said the AIA's Chief Economist, Kermit Baker, Hon. AIA, PhD. “Still, firm leaders remain largely optimistic about future busin...

October's Architecture Billings Index records a decline for the first time in nearly two years

2022-11-16T13:35:00-05:00

The data contained in the latest Architecture Billings Index (ABI) from the American Institute of Architects (AIA) shows a "considerable" decrease in the demand for design services across the industry in a sign that points to the arrival of a long-dreaded turndown for firms heading into the new year.

The ABI score for October was 47.7, down from September's 51.7 total and representing the first time since January of 2021 that the index has fallen below the threshold of 50 (which indicates a decline). The overall value of design contracts also dropped to a score of 48.6, with an increase in new project inquiries recorded at a score of 52.3.

October ABI Highlights:

Regional averages: Midwest (50.8); South (50.6); Northeast (50.3); West (49.6)
Sector index breakdown: institutional (54.3); mixed practice (50.8); multi-family residential (46.1); commercial/industrial (45.9)

“Economic headwinds have been steadily mounting, and finally led to weakening demand for new projects,” the AIA Chie...

September Architecture Billings Index dips slightly but remains in growth for 20th consecutive month

2022-10-19T12:58:00-04:00

New data from the American Institute of Architects (AIA) September Architecture Billings Index (ABI) indicates an increase in the demand for design services for the 20th consecutive month as the industry continues its positive growth into the year's final quarter.

For September, the ABI was at 51.7, down from August's total of 53.3, and up slightly from the 51.0 figure that was posted in July (a score above 50 indicates stable business conditions). Also, in September, the demand for both new project inquiries and design contracts adjusted slightly from August but also remained strong with scores of 53.6 and 50.7, respectively.

September ABI Highlights

Regional averages: Northeast (54.6); Midwest (52.1); South (51.7); West (51.6)
Sector index breakdown: institutional (58.9); mixed practice (50.3); multi-family residential (47.9); commercial/industrial (49.6)

“While billings in the Northeast region and the Institutional sector reached their highest pace of growth in several years, there...

August's Architecture Billings Index shows an accelerated increase in demand as economic concerns widen

2022-09-22T18:15:00-04:00

An increase in the overall demand for design services has been recorded for the 19th consecutive month, according to statistics contained in the August Architecture Billings Index (ABI) published this week by the American Institute of Architects (AIA). The ABI score is now up to 53.3, representing a 2.3 point increase from July’s recorded 51.0 figure.

The increase was driven by new project inquiries, which rose to 57.9 from 56.1 in July despite a registered decrease in the design contracts score to 52.3 from last month’s peak 52.9. Given the parameters of the survey (any score above 50 indicates an increase), the findings indicate an overall positive trajectory for the design industry nationwide.

August ABI Highlights

Regional averages: South (52.9); Midwest (51.4); West (50.2); Northeast (49.8)
Sector index breakdown: multi-family residential (52.0); institutional (52.0); commercial/industrial (51.2); mixed practice (51.2)

“While a strengthening billings score is encouraging, the fl...

Architecture Billings Index in July remains in growth territory

2022-08-24T13:59:00-04:00

Demand for design services at architecture firms across the U.S. has increased for the eighteenth consecutive month in July, according to new data from the American Institute of Architects (AIA). The Architecture Billings Index (ABI) reported a score of 51.0 last month.

While this reading is slightly below June’s score of 53.2, it still indicates stable business conditions for architecture firms, as any score above 50 suggests an increase in billings from the prior month. In addition, both the new project inquiries and design contracts indexes moderated from June but remained strong with scores of 56.1 and 52.9, respectively.

July ABI Highlights

Regional averages: South (53.6); Midwest (52.2); West (51.7); Northeast (48.4)
Sector index breakdown: multi-family residential (52.8); commercial/industrial (52.2); mixed practice (52.1); institutional (49.6)

“Despite architecture services employment recently surpassing pre-pandemic levels, the ABI score this month reflects the slowest grow...