In July, AIA/Deltek reported an Architecture Billings Index (ABI) score of 48.2 (any score below 50.0 indicates decreasing business conditions), marking the 18th consecutive month of declining billings for architecture firms. While up slightly from the previous month's score of 46.6, indicating a slowing in the rate of decline, the data shows that over half of responding firms are navigating challenging business conditions.
Image courtesy American Institute of Architects/Deltek
“Architecture firms continue to face a billings slowdown,” said AIA chief economist Kermit Baker. "However, the emerging prospects of lower interest rates coupled with a modest uptick in project inquiries suggest that some dormant projects may be revived in the coming months.”
The significant increase in inquiries into new projects is coupled with a fourth month of decline in newly signed design contracts. Business conditions remained in decline in most U.S. regions, but firms located in the Northeast reported stable billings for the second consecutive month.
Image courtesy American Institute of Architects/Deltek
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