Architecture News

Architecture Billings Index Holds Steady for Second Month in a Row

With spring in full motion, there’s a sense of awakening—or at least guarded optimism—present in the latest AIA/Deltek Architecture Billings Index (ABI), which reflects data for the month of March. With a score of 49.8 (any score below 50.0 indicates softening business activity at architecture firms), the latest numbers are a slight improvement from the previous score of 49.4. Moreover, the score marks the closest the index has come to the 50-point growth threshold since early 2023.

Per the latest report, new project inquiries experienced a steady rise; firm backlogs averaged 6.6 months, the highest since December 2023. Multifamily residential backlogs grew from 5.4 months in December to 6.2 months in March, while institutional backlogs remained steady at 8.2 months. However, design contracts declined for the 25th consecutive month, with the slowdown worsening from February.

Image courtesy AIA

“While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery,” said AIA chief economist Richard Branch, signaling that the rebound may not last. “These external issues will have a significant impact on the health of construction activity in both the near and long term.”

Image courtesy AIA

Breaking down regional averages, firms in the West experienced their first billings increase since December 2024 with an average score of 50.6, up from last month’s score of 47.2. The Midwest also hovered near the 50-mark with a score of 49.4—a more than 3-point increase from the previous ABI.

Image courtesy AIA

Breaking down the scores by sector, all landed north of 50: institutional (52.6); commercial/industrial (52.5); and multifamily residential (50.9). Mixed practice (firms that do not have at least half of their billings in any one other category) averaged 40.7.