In April, AIA/Deltek Architecture Billings Index (ABI)’s brief flirtation with growth came to a halt with a reported score of 48.3 (any score below 50.0 indicates softening business activity at architecture firms). Although the 1.5-point drop from April’s near-flat score of 49.8 is a modest one, the latest data breaks a two-month-long upward trend that would have brought the index near a threshold-breaking high not seen since early 2023. Per the AIA, the continuation of “broader economic instability” is the culprit behind the decline. Still, inquiries into new projects increased for the third consecutive month in April, and the value of new design contracts remained close to returning to growth.

“April’s economic picture was mixed as employers continued to add jobs, but inflation accelerated as higher energy prices tied to the conflict in Iran drove up costs,” said AIA chief economist, Richard Branch. “While a proposed gas tax holiday could offer some short-term relief, energy prices are unlikely to ease meaningfully until the conflict ends.

Region-by-region, averages remained below 50.0. The West, reporting a growth-indicating score of 50.6 in April, softening nearly two points to 49.0. The Midwest was down from 49.4 to 48.8 while the South slipped from 48.5 to 47.7. The Northeast was the anomaly of the bunch, rising from April’s score of 44.2 to 47.2. Breaking down the index by sector, firms specializing in multifamily residential reported an average score of 51.5 while institutional-focused firms landed at 51.1. Commercial/industrial averages scored 48.9 while mixed practice (firms that do not have at least half of their billings in any one other category) scored 42.5. In April, all sectors had scored north of 50. At next month’s AIA Conference on Architecture & Design in San Diego (June 10–13), there will be special dedicated programming focused on navigating today’s economic conditions. Branch will be on hand sharing daily market outlooks on the expo floor, leading a moderated conversation with AGC and ACEC economists, and hosting CE sessions on real-world economic implications for firms.