“Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025,” said Kermit Baker, chief economist at AIA, in a statement.

For this year, 41% of firms surveyed by AIA said they are estimating their net revenue will end up higher than last year, by an average projected growth of 0.4%. Still, 36% of firms are expecting less revenue this year than last. But more firms are optimistic about next year. 

Firms projecting growth in 2025 are expecting higher growth than this year, averaging 1%. Responding to AIA’s survey, they anticipate falling interest rates and a more favorable lending environment as factors, as well as their own current backlogs and inquiries for new projects. Fewer firms—26%—are still expecting less revenue next year, according to AIA.

“Overall, 41% of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32% projecting growth in the 5% to 9% range,” Baker said.

Regionally, the South saw the only positive billings score in October, with 52.1. The West and Midwest improved from September, rising to 47.6 and 46.9, respectively, while billings in the Northeast slipped slightly to 45.6. 

Between sectors, firms specializing in institutional work had the highest billings score at 50.5. Billings for architects focused on commercial/industrial work and multifamily residential also improved from September, but remained weak, with scores of 47.0 and 45.6, respectively.