Architecture Billings Remain Negative in January at 45.6
Washington, DC, February 19, 2025-Architecture firms reported a moderate uptick in billings in January as the AIA/Deltek Architecture Billings Index (ABI) was 45.6. Any score below 50.0 indicates decreasing business conditions.
December’s score was 44.6.
While most architecture firms saw billings decline in January, the proportion experiencing a decrease was slightly lower than in December. Inquiries for new projects continued to rise at a steady, slow pace, but the value of newly signed design contracts dropped for the eleventh month in a row, as clients stayed cautious amid ongoing economic uncertainty.
“Stubborn inflation, persistently high interest rates, and labor concerns continue to weigh on the willingness of owners and developers to move ahead with construction projects,” said AIA chief economist, Kermit Baker, Hon. AIA, PhD. “Architecture firms have been moving to right-size their operations in response to softer market conditions. There was a net loss of 1,400 positions at architecture firms nationally in 2024, and firm employment has declined by a total of 4,100 positions since the post-pandemic peak in June 2023.”
Billings were soft across all regions and specializations in January. Firms with a commercial/industrial focus reported the most significant decline in business conditions, but weakness was observed across all sectors. Business conditions remained weakest in the Northeast, continuing a trend from recent months.
Key ABI highlights for January include:
Regional averages were West (48.8); South (46.0); Midwest (45.6); Northeast (41.1).
The sector index breakdown was institutional (47.4); multifamily residential (45.0); mixed practice (firms that do not have at least half of their billings in any one other category) (44.3); commercial/industrial (43.1).
The project inquiries index was 51.4, and the design contracts index was 46.2.
Related Topics:The American Institute of Architects