Business Conditions at Architecture Firms Continues to Decline

Architecture Billings Index Falls Sharply in April
WASHINGTON – May 21, 2025 – The AIA/Deltek Architecture Billings Index (ABI) dropped to 43.2 in April, down from 44.1 in March, signaling a continued and accelerated decline in billing activity across U.S. architecture firms.
Billings Decline Amid Prolonged Downturn
Billings have now decreased in 28 of the past 31 months, following a sharp downturn after the post-pandemic construction boom. New project inquiries fell for the third consecutive month, while new design contract values have declined at most firms for 14 straight months.
Economic Uncertainty Slows Progress
“Uncertainty as to the economic outlook continues to hold back progress on new construction projects,”
– Kermit Baker, PhD, AIA Chief Economist
Despite the prolonged slowdown, Baker notes that architecture firms are managing the downturn effectively—staffing remains relatively stable, and project backlogs are holding stronger than expected.
Key April ABI Metrics
- Regional Averages
- South: 46.2
- Midwest: 44.4
- West: 42.1
- Northeast: 40.2
- Sector Performance
- Institutional: 46.3
- Mixed Practice: 47.6
- Commercial/Industrial: 40.5
- Multifamily Residential: 40.8
- Project Inquiries Index: 48.0
- Design Contracts Index: 43.3
Note: Regional and sector scores are reported as three-month moving averages and may not total the national average.