Graph by Archinect using data provided by the American Institute of Architects
The architecture industry’s long business slump shows little sign of letting up: The American Institute of Architects reported today that the latest AIA/Deltek Architecture Billings Index dipped to 46.6 in July (down from 47.3 in June), marking another month of contraction and extending the downturn to nearly three and a half years, the longest in the ABI’s history.
There’s still interest in new work, with project inquiries reportedly rising again in July, but signed design contracts continued to lag.
The weakness isn’t confined to one corner of the country, the survey says. Billings declined across all four regions and every major specialization, with the Northeast once again bringing up the rear. Multifamily and institutional firms have given up the modest gains seen earlier this year, while commercial and industrial firms remain stuck in a downturn that has lasted since July 2022.
Reading the tea leaves, AIA Chief Economist Richard Branch explained: “Macroeconomic uncertainty continues to weigh on the built environment. High oil prices are putting upward pressure on inflation and may lead to even higher rates in the back half of the year. This will put additional pressure on developers and may lead to a further weakening in billings.”
Related on Archinect: Architecture in a K-shaped economy with ‘widening differences’ between sectors, AIA saysJuly ABI Highlights
Regional averages: South (48.7); West (47.8); Midwest (46.7); Northeast (44.8)Sector index breakdown: multifamily residential (48.4); institutional (47.4); commercial/industrial (46.7); mixed practice (firms that do not have at least half of their billings in any one other category) (43.2)Project inquiries index: 52.6Design contracts index: 47.2
Archinect has covered contributing factors to the ongoing economic uncertainty for architecture firms, including unpredictable trade tariff policies and volatile construction material pricing.
Archinect Jobs, the industry-leading architecture job board, continues to be a strong metric for the health of the industry. Take a look at the current list of opportunities, or post your firm’s openings now. To browse thousands of job seeker profiles and find the right candidates quickly, try Archinect’s Talent Finder service.
How has business been feeling in your region and market? Do the ABI numbers reflect what you are seeing on the ground? Share in the comments below.
Similar articles on Archinect that may interest you…