Despite improving conditions in the broader economy, September marked the twentieth consecutive month of declining billings for architecture firms, according to the latest data from the AIA/Deltek Architecture Billings Index (ABI). The ABI score of 45.7 for the month indicates that the majority of firms continued to experience a decline in their billings.
“Despite recent rate cuts by the Federal Reserve, many clients remain on the sidelines with regard to proceeding on planned projects,” said Kermit Baker, PhD, AIA Chief Economist. “And while new project opportunities also emerge, clients are cautious about which to pursue. Fortunately, architecture firms report backlogs of 6.4 months on average, which remain above pre-pandemic levels and are an indication that there is existing work in the pipeline.”
Key ABI highlights for September include:
• Regional averages: South (49.5); Northeast (46.4); Midwest (45.0); West (42.6)
• Sector index breakdown: institutional (48.5); mixed practice (firms that do not have at least half of their billings in any one other category) (47.8); commercial/industrial (44.2); multifamily residential (41.7)
• Project inquiries index: 51.6
• Design contracts index: 48.3
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
Visit AIA’s website for detailed information about this, and past billing index reports.
