Business Conditions Soften at Architecture Firms in April
According to the American Institute of Architects' Architecture Billings Index for April, business conditions softened at architecture firms in April, as the AIA/Deltek ABI score fell back below 50. An ABI score below 50 indicates a decline in firm billings. Excluding the slight growth seen in March, billings at architecture firms have declined every month since last October.
While inquiries into new work continued to grow in April, the pace of growth remained relatively slow, and the value of newly signed design contracts was essentially flat for the month. Although new projects are continuing to come into firms, concern about a variety of factors remains, including interest rates, financing and the lingering potential for a recession.
More info from April's ABI
For the sixth consecutive month, only firms located in the Midwest saw billings growth in April. Business conditions remained sluggish at firms in other regions. By firm specialization, billings deteriorated further at firms with a multifamily residential specialization, reaching their lowest level since the height of the pandemic in 2020. Firms with a multifamily residential specialization have seen a significant decrease in work over the last nine months. On the other hand, firms with commercial/industrial and institutional specializations reported modest growth this month. However, some fluctuation in business conditions in all sectors is likely to continue over the coming months.