Business Conditions at Architecture Firms Finally Stabilize in October, Reports ABI

Image courtesy American Institute of Architects/Deltek

In October, the AIA/Deltek Architecture Billings Index (ABI reported a score of 50.3, indicating the first signs of stablization after a 20 month economic slump for architecture firms. A significant increase from September's score of of 45.7, the score indicates a balance between the number of firms experiencing a decrease in billings and those seeing an increase (any score below 50.0 indicates decreasing business conditions). While project inquiries continued to increase in October, clients are still cautious about moving forward and the value of new design contracts continued to decline for the seventh month in a row.

Image courtesy American Institute of Architects/Deltek

“Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025,” said AIA chief economist Kermit Baker. “Overall, 41 percent of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32 percent projecting growth in the 5 percent to 9 percent range.”