Architecture firm billings remained soft entering into 2024, with an AIA/Deltek Architecture Billings Index (ABI) score of 46.2 in January. Any score below 50.0 indicates decreasing business conditions.
“This now marks the lengthiest period of declining billings since 2010, although it is reassuring that the pace of this decline is less rapid and the broader economy showed improvement in January,” said Kermit Baker, PhD, AIA Chief Economist. "Firms are seeing growth with inquiries into new projects and value of newly signed design contracts is holding steady, showing potential signs of interest from clients in new projects.”
Business conditions remained weak at firms in all regions of the country except the Midwest, where modest growth was seen in three of the last four months. Firms with a multifamily residential specialization continue to report the softest business conditions of all specializations.
The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-twelve-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.
Key ABI highlights for January include:
- Regional averages: Northeast (43.6); Midwest (50.9); South (45.2); West (46.6)
- Sector index breakdown: commercial/industrial (47.0); institutional (48.5); mixed practice (firms that do not have at least half of their billings in any one other category) (42.9); multifamily residential (44.6)
- Project inquiries index: 53.8
- Design contracts index: 49.7
Note: The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score. Every January the AIA research department updates the seasonal factors used to calculate the ABI, resulting in a revision of recent ABI values.
Related Stories
Airports | Aug 31, 2015
Surveys gauge users’ satisfaction with airports
Several surveys gauge passenger satisfaction with airports, as flyers and airlines weigh in on technology, security, and renovations.
Airports | Aug 31, 2015
Small and regional airports in a dogfight for survival
Small and regional airports are in a dogfight for survival. Airlines have either cut routes to non-hub markets, or don’t provide enough seating capacity to meet demand.
Airports | Aug 31, 2015
Airports expand rental car facilities to ease vehicular traffic at their terminals
AEC teams have found fertile ground in building or expanding consolidated rental car facilities, which are the No. 1 profit centers for most airports.
Airports | Aug 31, 2015
Experts discuss how airports can manage growth
In February 2015, engineering giant Arup conducted a “salon” in San Francisco on the future of aviation. This report provides an insight into their key findings.
Healthcare Facilities | Aug 28, 2015
Hospital construction/renovation guidelines promote sound control
The newly revised guidelines from the Facilities Guidelines Institute touch on six factors that affect a hospital’s soundscape.
Healthcare Facilities | Aug 28, 2015
7 (more) steps toward a quieter hospital
Every hospital has its own “culture” of loudness and quiet. Jacobs’ Chris Kay offers steps to a therapeutic auditory environment.
Healthcare Facilities | Aug 28, 2015
Shhh!!! 6 ways to keep the noise down in new and existing hospitals
There’s a ‘decibel war’ going on in the nation’s hospitals. Progressive Building Teams are leading the charge to give patients quieter healing environments.
Mixed-Use | Aug 26, 2015
Innovation districts + tech clusters: How the ‘open innovation’ era is revitalizing urban cores
In the race for highly coveted tech companies and startups, cities, institutions, and developers are teaming to form innovation hot pockets.
Contractors | Aug 19, 2015
FMI's Nonresidential Construction Index Report: Recovery continues despite slow down
The Q3 NRCI dropped to 63.6 from the previous reading of 64.9 in Q2, painting a mixed picture of the state of the nonresidential construction sector.
Giants 400 | Aug 7, 2015
GOVERNMENT SECTOR GIANTS: Public sector spending even more cautiously on buildings
AEC firms that do government work say their public-sector clients have been going smaller to save money on construction projects, according to BD+C's 2015 Giants 300 report.