The AIA/Deltek Architecture Billings Index (ABI) reported a score of 43.6 for March, indicating a decline in billings for architecture firms. This marks the 14th consecutive month of decreasing billings, as firms face challenges such as inflation, supply chain issues, and other economic factors.
According to AIA chief economist Kermit Baker, the continued decline in billings is due to elevated construction costs and high interest rates, which are discouraging new project activity. However, he notes that institutional design work seems to have stabilized, offering some stability to the profession as it navigates challenging economic conditions.
Institutional design work has been able to stabilize despite the challenges faced by the profession. Firms specializing in commercial and industrial projects have seen a faster decline in billings compared to other specializations.
The decrease in billings was observed in all regions of the country, with the Midwest and South experiencing the softest business conditions. For a visual representation of recent ABI scores, refer to the interactive graph below.
