Continued ‘weak’ business conditions for architecture firms in July: Architecture Billings Index | News

The latest AIA/Deltek Architecture Billings Index was released this morning, reporting another sluggish month for the architecture industry. July’s score of 46.2 dropped slightly from 46.8 in June, which indicates a continued contraction in firm billings for the majority of architecture practices in the United States. (Any score below 50.0 signals a decline.)

Inquiries into new work experienced another slight uptick, while design contract values reported a continued month of decline — a persistent trend for over two and a half years now.

“Business conditions remain challenging for architecture firms nationwide, with billings declining across all regions in July,” AIA Chief Economist Kermit Baker remarked on the July data. “Client inquiries into new projects continue to build. Still, while commercial and institutional sectors show some signs of stability, the multifamily residential sector still is facing significant headwinds.”

July ABI Highlights

• Regional averages: Northeast (47.8); South (47.5); West (46.4); Midwest (45.1) 
• Sector index breakdown: institutional (47.9); commercial/industrial (49.9); mixed practice (firms that do not have at least half of their billings in any one other category) (42.8); multifamily residential (43.7)
• Project inquiries index: 53.4
• Design contracts index: 47.9

The AIA’s recent mid-year Consensus Construction Forecast also kept expectations low, with spending on nonresidential buildings predicted to rise only 1.7% this year and 2.0% next year. Archinect has covered contributing factors to the ongoing economic uncertainty for architecture firms, including erratic trade tariff policies and unsteady construction material pricing.

Archinect Jobs, the industry-leading architecture job board, continues to be a strong metric for the health of the industry. Take a look at the current list of opportunities, or post your firm’s openings now. To browse thousands of job seeker profiles and find the right candidates quickly, try Archinect’s Talent Finder service.

How has business been feeling in your region and market? Do the ABI numbers reflect what you are seeing on the ground? Share in the comments below.