Cautious optimism: Architecture billings moderate after nearly two years of monthly declines

DES MOINES, IA – November 20, 2024– 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.

"Iowa's architecture firms continue to demonstrate resilience in the face of ongoing economic uncertainty," said Jessica Reinert, Hon. AIA Iowa, Executive Director of AIA Iowa. "Although the October Architecture Billings Index registered the Midwest at 46.9 points, our region has seen a slight uptick since March. However, the architectural profession remains challenged by economic volatility and workforce shortages."

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 more ABI information.