Economics
Architecture Billings Index Hits 18th Monthly Decline, But Drop Slows
The AIA/Deltek Architecture Billings Index has now shown 18 consecutive months of declining billings for member architecture firms surveyed. Graph courtesy of American Institute of Architects
Architecture and related professional services firms in July marked their 18th consecutive month of declining billings, but the drop slowed, according to new numbers released for the AIA/Deltek Architecture Billings Index. Last month's score of 48.2 rose slightly from the June figure of 46.4, a positive market sign, but the below-50 measure shows that more than half of respondents continue to navigate difficult AE sector business conditions.
Newly signed design contracts also decreased, the fourth consecutive fall for the index.
The market barometer by the American Insitute of Architects and software firm Deltek provides an approximate 9-12-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of AIA member firms that measures the change in the number of services provided to clients.
“Architecture firms continue to face a billings slowdown,” said Kermit Baker, AIA chief economist. “However, the emerging prospects of lower interest rates coupled with a modest uptick in project inquiries suggest that some dormant projects may be revived in the coming months.”
Firms located in the Northeast U.S. experienced what AIA characterized as “stable” billings, reporting at least flat results for the second consecutive month—the first such period with scores that reached 50 since mid-2022.
Billings declined in all other regions, with the Midwest at 47.6; the South, 46.3; and the West, 46.0
Among market sector index breakdowns, institutional work was highest at 49.1; mixed practice (firms that do not have at least half of their billings in any one category), 47.7; multifamily residential, 45.4; and commercial/institutional, 49.0
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