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
Giants 400 | Aug 22, 2022
Top 85 Laboratory Facility Architecture + AE Firms for 2022
Flad Architects, HDR, DGA, and Payette top the ranking of the nation's largest science and technology (S+T) laboratory facility architecture and architecture/engineering (AE) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 22, 2022
Top 85 University Engineering + EA Firms for 2022
AECOM, Jacobs, Salas O'Brien, and IMEG head the ranking of the nation's largest university sector engineering and engineering/architecture (EA) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 22, 2022
Top 150 University Architecture + AE Firms for 2022
Gensler, CannonDesign, SmithGroup, and Perkins and Will top the ranking of the nation's largest university sector architecture and architecture/engineering (AE) firms, as reported in Building Design+Construction's 2022 Giants 400 Report.
| Aug 22, 2022
Gainesville, Fla., lawmakers moved to end single-family zoning
The Gainesville City Commission recently voted to advance zoning changes that would allow duplexes, triplexes, and quadplexes to be built on land currently zoned for single-family homes.
| Aug 22, 2022
For Gen Z, “enhanced communication” won’t cut it
As the fastest-growing generation, Generation Z, loosely defined as those born between the mid-1990s and early 2000s, has become a hot topic in conversations surrounding workplace design.
| Aug 22, 2022
Less bad is no longer good enough
As we enter the next phase of our fight against climate change, I am cautiously optimistic about our sustainable future and the design industry’s ability to affect what the American Institute of Architects (AIA) calls the biggest challenge of our generation.
Giants 400 | Aug 21, 2022
Top 110 Architecture/Engineering Firms for 2022
Stantec, HDR, HOK, and Skidmore, Owings & Merrill top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 20, 2022
Top 180 Architecture Firms for 2022
Gensler, Perkins and Will, HKS, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 19, 2022
2022 Giants 400 Report: Tracking the nation's largest architecture, engineering, and construction firms
Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories.
| Aug 19, 2022
Cuningham appoints Jacqueline Dompe as new Chief Executive Officer
Cuningham, a national design firm, is thrilled to announce the appointment of Jacqueline Dompe as the firm’s Chief Executive Officer (CEO).