Business conditions decline to conclude 2024, ABI December data shows

WASHINGTON – January 22, 2025 – Architecture firms reported a decline in billings in December as the AIA/Deltek Architecture Billings Index (ABI) fell to 44.1. Any score below 50.0 indicates decreasing business conditions.

The stable level of billings seen in October and November stalled and headed down again to end 2024. Inquiries into new projects continued to increase at a relatively slow rate, while the value of newly signed design contracts decreased further in December.

“While there were signs that the design cycle was bottoming out in the fourth quarter, the December reading indicated a step back,” said Kermit Baker, PhD, AIA Chief Economist. “There remains considerable uncertainty as to the feasibility of many planned construction projects, so the wait-and-see period is extending into 20-25.”

Firms located in the West reported growth for the third consecutive month in December. All other regions, particularly at firms in the Northeast, reported softer business conditions. Firms with an institutional sector show opportunities for growth, as they have for several months.

Key ABI highlights for December include:
•    Regional averages: West (52.2); South (47.2); Midwest (46.4); Northeast (41.7)
•    Sector index breakdown: multifamily residential (46.5); institutional (49.8); commercial/industrial (44.1); mixed practice (firms that do not have at least half of their billings in any one other category) (46.0)
•    Project inquiries index: 51.6
•    Design contracts index: 45.5

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.