Architecture firms across the U.S. are facing sustained headwinds as the latest data from the AIA/Deltek Architecture Billings Index (ABI) reveals ongoing contraction. March’s ABI score dipped to 44.1, signaling a continued decline in billings, and highlighting widespread hesitation in the construction and development markets.

This downturn isn’t new. Since the post-pandemic high point in September 2022, architecture billings have trended downward for 27 of the past 30 months. The industry is now grappling with two consecutive months of reduced inquiries into new projects and a staggering 13 straight months of declining newly signed design contracts — the longest streak on record.

“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 Kermit Baker, PhD, Hon. AIA, AIA Chief Economist. “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.”

Despite the gloom in billings, some firms may find stability in existing workloads. A 6.5-month average backlog offers temporary insulation from further economic shockwaves, but signs of future work remain weak across the board.

Key ABI Highlights for March:

  • Regional averages (three-month moving average):
  • South: 48.3
  • Midwest: 45.5
  • West: 43.0
  • Northeast: 40.5
  • Sector performance:
  • Institutional: 46.2
  • Mixed Practice: 46.1
  • Commercial/Industrial: 45.1
  • Multifamily Residential: 40.3
  • Project Inquiries Index: 47.7
  • Design Contracts Index: 42.4

All figures below 50 indicate a decline in activity, and while regional and sector-specific numbers provide some nuance, the overall national picture suggests persistent caution and stalled momentum.

For a deeper look at the March ABI and historical data, visit the AIA’s website.