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 hesitance among clients to commit to new projects with a slump in newly signed design contracts. As a result, backlogs at architecture firms fell to 6.5 months on average in the third quarter, their lowest level since the fourth quarter of 2021."

September ABI Highlights

• Regional averages: Northeast (46.4); South (46.2); Midwest (49.3); West (44.3)
• Sector index breakdown: commercial/industrial (45.0); institutional (50.1); mixed practice (firms that do not have at least half of their billings in any one other category) (46.2); multifamily residential (43.5)
• Project inquiries index: 53.7
• Design contracts index: 46.2

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