The AIA/Deltek Architecture Billings Index® (ABI) fell to 46.6 in July, signaling continued weakness at architecture firms nationwide. The downturn has now lasted nearly three and a half years, the longest stretch in the ABI’s history.
While inquiries for new projects increased again, growth slowed from June. Newly signed design contracts also weakened after nearing positive territory the previous month.
Billings remained soft across all four U.S. regions and every major specialization. Firms in the Northeast reported the weakest conditions for the second consecutive month, while declines moderated slightly elsewhere. Multifamily residential and institutional firms, which had shown modest improvement earlier this year, also softened.
AIA Chief Economist Richard Branch said macroeconomic uncertainty continues to weigh on the built environment, with high oil prices adding inflationary pressure and potentially keeping interest rates elevated. Those conditions could place additional pressure on developers and further weaken architecture firm billings.
Key ABI highlights for July include:
- 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: 52.6
- Design contracts index: 47.2
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
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