Architecture firms across the U.S. reported a decline in billings in January, according to the American Institute of Architects.
The AIA/Deltek Architecture Billings Index (ABI) for January was 45.6, AIA said Wednesday, adding that any score below 50.0 indicates decreasing business conditions.
Billings were also down in December, but the "proportion experiencing a decrease was slightly lower than in December," according to AIA.
Inquiries for new projects are rising at a "steady, slow pace, but the value of newly signed design contracts dropped for the eleventh month in a row as clients stayed cautious amid ongoing economic uncertainty," AIA said.
"Stubborn inflation, persistently high interest rates, and labor concerns continue to weigh on the willingness of owners and developers to move ahead with construction projects," AIA Chief Economist Kermit Baker said in the release. "Architecture firms have been moving to right-size their operations in response to softer market conditions. There was a net loss of 1,400 positions at architecture firms nationally in 2024, and firm employment has declined by a total of 4,100 positions since the post-pandemic peak in June 2023."
Among regions, the West had the highest score in January (48.8), followed by the South (46.0), Midwest (45.6), and Northeast (41.1). The sector index breakdown was institutional (47.4), multifamily residential (45.0), mixed practice (44.3), and commercial/industrial (43.1).