Post Time：Feb 25,2025Classify:Industry NewsView：987
Architectural billings declined again in January after the American Institute of Architects (AIA) reported that its monthly Architecture Billings Index (ABI) dropped to 45.6. Any score below 50.0 indicates decreasing business conditions.
AIA officials note that while billings declined to start 2025, the decrease was slightly lower than in December 2024.
“Stubborn inflation, persistently high interest rates and labor concerns continue to weigh on the willingness of owners and developers to move ahead with construction projects,” says AIA chief economist Kermit Baker. “Architecture firms have been moving to right-size their operations in response to softer market conditions. There was a net loss of 1,400 positions at architecture firms nationally in 2024, and firm employment has declined by 4,100 since the post-pandemic peak in June 2023.”
Officials say inquiries for new projects continued to rise slowly, but the value of newly signed design contracts dropped for the eleventh month in a row as clients stayed cautious amid ongoing economic uncertainty.
Billings remained soft throughout all regions and specializations in January. Firms focused on commercial/industrial sectors reported the most significant decline. Business conditions remained weakest in the Northeast, continuing a trend from recent months.
Key ABI Highlights
Regional averages: West (48.8); South (46.0); Midwest (45.6); Northeast (41.1)
Sector index breakdown: institutional (47.4); multifamily residential (45.0); mixed practice (firms that do not have at least half of their billings in any one other category) (44.3); commercial/industrial (43.1)
Project inquiries index: 51.4
Design contracts index: 46.2
Source: usglassmagAuthor: shangyi
