November ABI Score Inched Down to 49.6

Washington, DC, December 18, 2024-The November AIA/Architecture Billings Index (ABI) score of 49.6 changed little from October’s score of 50.3, indicating that the share of architecture firms that reported declining billings was essentially the same as the share that reported increasing billings.

Any score below 50.0 indicates decreasing business conditions, but there are encouraging signs of the pipeline.

The return of billings to a stable level after nearly two years of decline signals potential improvement across the industry. Additionally, inquiries into new projects are steadily increasing, demonstrating sustained interest in future work opportunities. However, newly signed design contracts have experienced an eighth consecutive month of decline, suggesting that a more robust upturn in design activity is still distant.

“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,” said Kermit Baker, PhD, AIA chief economist. “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.”

Regional averages were as follows: West (54.3); South (50.0); Midwest (48.1); Northeast (46.9)

The sector index breakdown was multifamily residential (50.8); institutional (50.6); commercial/industrial (49.4); mixed practice (firms that do not have at least half of their billings in any one other category) (48.5).

The project inquiries index was 54.1, and the design contracts index was 48.3.

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