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 quarter of 2022 in negative territory, a slowdown in construction activity is expected later this year, though the depth of the downturn remains unclear.”

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