Architecture Firm Billings Continue to Decline; Broader Economy Remains Generally Positive

WASHINGTON – March 19, 2025 – The AIA/Deltek Architecture Billings Index (ABI) continues to weaken posting a score of 45.5 for February, indicating that a majority of firms are still experiencing declining firm billings.  

For the first time since the peak of the pandemic in 2020, February saw a drop in inquiries for new projects, typically a steady indicator of potential opportunities even during economic slowdowns. Adding to the strain, new signed design contracts have decreased for the twelfth consecutive month, reflecting client hesitation to commit amidst ongoing economic uncertainty. Billings remained soft in all regions of the country in February, with business conditions also weak across firms of all specializations.

"Conditions in the broader economy were generally positive in February, with the Consumer Price Index (CPI) increasing by only a modest amount, long-term interest rates easing from January levels, and healthy job growth,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “However, uncertainty surrounding the impact of recently announced tariffs may lead to a rise in building material prices in the coming months while immigration policy may put even more pressure on an already undersupplied construction labor market."  

Key ABI highlights for February include:
•    Regional averages: West (48.1); South (47.6); Midwest (45.2); Northeast (41.3)
•    Sector index breakdown: commercial/industrial (46.9); institutional (46.4); multifamily residential (46.1); mixed practice (firms that do not have at least half of their billings in any one other category) (42.1) 
•    Project inquiries index: 47.8
•    Design contracts index: 42.0

The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.

Visit AIA’s website for detailed information about this, and past billing index reports.

About AIA
Founded in 1857, AIA consistently works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through more than 200 international, state, and local chapters, AIA advocates for public policies that promote economic vitality and public well-being.

AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders and the public to find solutions to pressing issues facing our communities, institutions, nation, and world. Members adhere to a code of ethics and conduct to ensure the highest professional standards.

About Deltek
Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 Architecture & Engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Our industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue. Learn more at Deltek.