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The June AIA/Deltek Architecture Billings Index (ABI) shows limited but encouraging signs of improvement, with fewer signs of firms reporting a decline in billings during the month of May compared to April. Still, despite the increased score of 47.2 from the 43.2 reported for April, business conditions remain weak and the ABI continues to linger in negative territory. (Any score below 50.0 indicates softening business conditions at architecture firms.) Notably, inquiries into new work increased this period for the first time since January, reflecting a “modest degree of stabilization in the economy recently,” per the AIA. The value of signed design contracts, however, continued to decline, which signals that “while clients are starting to explore new projects, they remain hesitant to sign a contract committing to them.”

Image courtesy the American Institute of Architects

“Business conditions remained sluggish nationwide in May, with nonresidential construction activity continuing to decline in several major metro areas,” remarked AIA chief economist Kermit Baker, who led a Q&A session on how to best navigate the uncertain economy at the 2025 AIA Conference on Architecture & Design in Boston earlier this month.  “Firms across all specializations reported declining billings this month. However, the pace of decline slowed at firms specializing in multifamily residential projects. These, along with institutional work, are likely to be the first to return to growth when conditions begin to improve.”

Image courtesy the American Institute of Architects

Regionally, the South and West reported the highest scores (49.2 and 44.3, respectively). While the South almost breaks through into positive territory, the West’s score is also a marked improvement from previous months, representing a more than 2-point increase from May’s ABI. Among sectors, institutional projects continued to lead, dipping slightly with a score 46.2 (compared to the previous score of 46.3). As noted by Baker, multifamily residential projects showed the most significant signs of a rebound, increasing from a score of 40.8 of 46.1. Still, there’s a long road to go until the sector—and architecture billings as a whole—confidently crossses over into the domain of non-softening business conditions.

Compare recent ABI scores with the interactive graph below.

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