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 firms eased only slightly through the year despite the overall reported softness in billings.” 

December ABI Highlights

• Regional averages: Northeast (45.9); Midwest (50.3); South (43.4); West (45.3)
• Sector index breakdown: commercial/industrial (46.4); institutional (46.5); mixed practice (firms that do not have at least half of their billings in any one other category) (42.3); multifamily residential (45.8)
• Project inquiries index: 53.1
• Design contracts index: 50.0

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