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Architecture firms across the United States experienced ongoing challenges in March as the AIA/Deltek Architecture Billings Index (ABI) registered a score of 44.1, down from February's score of 45.5 (any score below 50.0 indicates decreasing business conditions). This continues a troubling trend that began after September 2022, with billings decreasing in 27 of the past 30 months. The industry faces additional concerns as project inquiries have fallen for two consecutive months, while newly signed design contracts have declined for an unprecedented 13 straight months.

Image courtesy American Institute of Architects/Deltek

“Clients are increasingly cautious about starting projects due to uncertainty over future trends in interest rates and building materials costs, as well as the potential for an economic slowdown,” said AIA chief economist Kermit Baker. "Unfortunately, this softness in firm billings is likely to continue as indicators of future work remain weak, however, the average project backlog at firms stands at a reasonably healthy 6.5 months, offering a bit of a buffer if future project work continues to remain soft.”

Regional data shows the South performing relatively better with a score of 48.3, followed by the Midwest (45.5), West (43.0), and Northeast (40.5). Among sectors, institutional projects showed the strongest performance at 46.2, while multifamily residential scored lowest at 40.3. Despite the gloomy outlook, architecture firms maintain an average project backlog of 6.5 months, which provides some buffer against continued market softness.

Image courtesy American Institute of Architects/Deltek

Compare recent ABI scores with the interactive graph below.