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Architecture firms across the United States faced continued challenges in January, with the AIA/Deltek Architecture Billings Index (ABI) reporting a score of 45.6 (any score below 50.0 indicates decreasing business conditions). While the rate of decline showed slight improvement from December, the value of new design contracts decreased for the 11th consecutive month as clients remained hesitant amid economic uncertainties.

Image courtesy American Institute of Architects/Deltek

“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.”

The downturn affected all regions and sectors, with commercial/industrial projects experiencing the sharpest decline at 43.1, while the Northeast region continued to face the most challenging conditions with an index of 41.1. Despite these headwinds, the project inquiries index maintained a positive score of 51.4, suggesting potential future activity, though firms remain cautious about immediate prospects.

Image courtesy American Institute of Architects/Deltek

Compare recent ABI scores with the interactive graph below.

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