Business Conditions remain flat at Architecture Firms, ABI data show

DES MOINES, IA – November 18, 2024– The AIA/Deltek Architecture Billings Index (ABI) dipped slightly below 50 for November. The November AIA/Deltek ABI score of 49.6 changed little from October’s score of 50.3, indicating that the share of architecture firms that reported declining billings was essentially the same as the share that reported increasing billings. Any score below 50.0 indicates decreasing business conditions, but there are encouraging signs of the pipeline.

The return of billings to a stable level after nearly two years of decline signals potential improvement across the industry. Additionally, inquiries into new projects are steadily increasing, demonstrating sustained interest in future work opportunities. However, newly signed design contracts have experienced an eighth consecutive month of decline, suggesting that a more robust upturn in design activity is still distant.

“While architectural billings in the Midwest continued to decline in November 2024, as indicated by the latest AIA Architecture Billings Index (ABI), the rate of decline has slowed. November’s regional score of 48.1 points marks the highest level since February and a steady increase from the April low,” said Jessica Reinert, CAE, AIA Iowa Executive Director. Although this upward trend is encouraging, a score below 50 still signals a contraction in architectural billings. As highlighted in the AIA Iowa Market Report from Quarter 3, economic conditions remain the top concern for Iowa architecture firms.”

Key ABI highlights for November include:

• Regional averages: West (54.3); South (50.0); Midwest (48.1); Northeast (46.9)
• Sector index breakdown: multifamily residential (50.8); institutional (50.6); commercial/industrial (49.4); mixed practice (firms that do not have at least half of their billings in any one other category) (48.5)
• Project inquiries index: 54.1
• Design contracts index: 48.3

(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.