Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
“There are indicators this month that business conditions at firms may finally begin to pick up in the coming months. Inquiries into new projects grew at their fastest pace since November, and the value of newly signed design contracts increased at their fastest pace since last summer,” said Kermit Baker, PhD, AIA Chief Economist." Given the moderation of inflation for construction costs and prospects for lower interest rates in the coming months, there are positive signs for future growth.”
The Midwest as a region is still reporting billings growth, despite business conditions remaining weak across the country in February. Firms located in the Midwest reported growth for the last three months, and for four of the last five months.
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 February include:
- Regional averages: Northeast (44.0); Midwest (50.8); South (47.7); West (47.2)
- Sector index breakdown: commercial/industrial (46.1); institutional (50.7); mixed practice (firms that do not have at least half of their billings in any one other category) (47.1); multifamily residential (44.9)
- Project inquiries index: 56.0
- Design contracts index: 51.1
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
Related Stories
Architects | Nov 10, 2022
What’s new at 173 architecture firms for 2022
More than 295 U.S. architecture and architecture-engineering (AE) firms participated in BD+C's 2022 Giants 400 survey. As part of the Giants survey process, participating firms are asked to describe their most impactful firm innovations and noteworthy company moves in the past 12 months. Here is a collection of the most compelling business and project innovations and business moves from the 2022 Architecture Giants.
Giants 400 | Nov 9, 2022
Top 30 Data Center Architecture + AE Firms for 2022
HDR, Corgan, Sheehan Nagle Hartray Architects, and Gensler top the ranking of the nation's largest data center architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Nov 8, 2022
Top 110 Sports Facility Architecture and AE Firms for 2022
Populous, HOK, Gensler, and Perkins and Will top the ranking of the nation's largest sports facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Industry Research | Nov 8, 2022
U.S. metros take the lead in decarbonizing their built environments
A new JLL report evaluates the goals and actions of 18 cities.
Hotel Facilities | Nov 8, 2022
6 hotel design trends for 2022-2023
Personalization of the hotel guest experience shapes new construction and renovation, say architects and construction experts in this sector.
Green | Nov 8, 2022
USGBC and IWBI will develop dual certification pathways for LEED and WELL
The U.S. Green Building Council (USGBC) and the International WELL Building Institute (IWBI) will expand their strategic partnership to develop dual certification pathways for LEED and WELL.
Reconstruction & Renovation | Nov 8, 2022
Renovation work outpaces new construction for first time in two decades
Renovations of older buildings in U.S. cities recently hit a record high as reflected in architecture firm billings, according to the American Institute of Architects (AIA).
Sponsored | Steel Buildings | Nov 7, 2022
Steel structures offer faster path to climate benefits
Faster delivery of buildings isn’t always associated with sustainability benefits or long-term value, but things are changing. An instructive case is in the development of steel structures that not only allow speedier erection times, but also can reduce embodied carbon and create durable, highly resilient building approaches.
Building Team | Nov 7, 2022
U.S. commercial buildings decreased energy use intensity from 2012 to 2018
The recently released 2018 Commercial Buildings Energy Consumption Survey (CBECS) by the U.S. Energy Information Administration found that the total floorspace in commercial buildings has increased but energy consumption has not, compared with the last survey analyzing the landscape in 2012.
Sports and Recreational Facilities | Nov 7, 2022
Gilbane, Turner, Populous tapped to design and build new Buffalo Bills stadium
The joint venture of Gilbane Building Company and Turner Construction Company, in association with 34 Group, has been selected to provide construction management of the planned new NFL stadium for the Buffalo Bills in Orchard Park, N.Y. The project team also includes the project management firm, Legends Project Development, and Populous as the designer.
