Architecture Billings Declined to 44.1 in December

Architecture Billings Declined to 44.1 in December

January 22, 2025 from Floor Focus FloorDaily News

Washington, DC, January 22, 2025 – Architecture firms reported a decline in billings in December as the AIA/Deltek Architecture Billings Index (ABI) fell to 44.1. Any score below 50.0 indicates decreasing business conditions.

November’s score was 49.6.

The stable level of billings seen in October and November stalled and headed down again to end 2024. Inquiries into new projects continued to increase at a relatively slow rate, while the value of newly signed design contracts decreased further in December.

“While there were signs that the design cycle was bottoming out in the fourth quarter, the December reading indicated a step back,” said Kermit Baker, PhD, AIA chief economist. “There remains considerable uncertainty as to the feasibility of many planned construction projects, so the wait-and-see period is extending into 20-25.”

Firms located in the West reported growth for the third consecutive month in December. All other regions, particularly at firms in the Northeast, reported softer business conditions. Firms with an institutional sector show opportunities for growth, as they have for several months.

Regional averages were as follows: West (52.2); South (47.2); Midwest (46.4); Northeast (41.7).

The sector index breakdown was multifamily residential (46.5); institutional (49.8); commercial/industrial (44.1); mixed practice (firms that do not have at least half of their billings in any one other category) (46.0).

The project inquiries index was 51.6, and design contracts index was 45.5.