After twenty months of declining billings, the AIA/Deltek Architecture Billings Index (ABI) score for October was 50.3. This score indicates a balance between the number of firms experiencing a decrease in billings and those seeing an increase.
Although there was an increase in inquiries for new projects in October, clients are still cautious about moving forward. The value of new design contracts continued to decline for the seventh month in a row.
“Billings finally stabilized this month, and firms are feeling more optimistic about revenue projections for 2025,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “Overall, 41 percent of responding firm leaders expect to see net revenue growth from 2024 to 2025, with 32 percent projecting growth in the 5 percent to 9 percent range.”
Key ABI highlights for October include:
• Regional averages: South (52.1); West (47.6); Midwest (46.9); Northeast (45.6)
• Sector index breakdown: institutional (50.5); mixed practice (firms that do not have at least half of their billings in any one other category) (48.0); commercial/industrial (47.0); multifamily residential (45.6)
• Project inquiries index: 54.1
• Design contracts index: 45.3
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
Visit AIA’s website for detailed information about this, and past billing index reports.