 for January has recorded a slightly slowing decline to 45.6. For the month, inquiries for new projects continued to rise at a steady, slow pace, while the value of newly signed design contracts dropped for the eleventh month in a row. This is...){kind=link}
anchor
Graph by Archinect using data provided by the American Institute of Architects
The latest AIA/Deltek Architecture Billings Index (ABI) for January has recorded a slightly slowing decline to 45.6. For the month, inquiries for new projects continued to rise at a steady, slow pace, while the value of newly signed design contracts dropped for the eleventh month in a row. This is the third consecutive ABI to record a decline. Any score below 50.0 indicates decreasing business conditions.
Billings were shown to be soft across all regions and specializations. 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.
“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. “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.”
Key ABI highlights for January include:
- Regional averages: West (48.8); South (46.0); Midwest (45.6); Northeast (41.1)
- Sector index breakdown: 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)
- Project inquiries index: 51.4
- Design contracts index: 46.2
Archinect Jobs, the industry-leading architecture job board, continues to be a strong metric for the health of the industry. Take a look at the current list of opportunities, or post your firm’s openings now. To browse thousands of job seeker profiles and find the right candidates quickly, try Archinect’s Talent Finder service.