In March, the AIA/Deltek Architecture Billings Index (ABI) recorded a score of 43.6, indicating a decline in billings and further softening of business conditions for architecture firms. This marks the 14th consecutive month of decreasing billings as companies continue to grapple with challenges such as inflation, supply chain disruptions, and other economic obstacles.
According to AIA chief economist Kermit Baker, the combination of elevated construction costs and persistently high interest rates is discouraging new project activity within the industry. Despite this, he mentioned that institutional design work has shown signs of stabilization, providing a stable foundation for the profession while awaiting more favorable economic conditions for construction to improve.
The decline in billings was observed across all regions of the United States, with the Midwest and South experiencing the weakest business conditions in March. Firms specializing in different areas also reported a decrease in billings, with those focusing on commercial and industrial projects experiencing a sharper decline.
For a visual representation of recent ABI scores, you can refer to the interactive graph below: [insert graph].