AIA/Deltek ABI: Architecture Firm Billings Weaken Further as Economic Uncertainty Slows Projects
Architecture firm billings declined in May as economic uncertainty continued to weigh on the design sector. The latest AIA/Deltek Architecture Billings Index also saw declines in project inquiries and new design contracts.
WASHINGTON – June 24, 2026 – Business conditions at architecture firms weakened further in May. The AIA/Deltek Architecture Billings Index® (ABI) declined to its lowest level since January, with a score of 44.5.
While growth appeared to be approaching earlier this year, the current economic certainty has contributed to business conditions softening across all regions. Billings remained closest to growth at firms located in the South, following the trend for most of the year thus far. Firms of all specializations also reported declining billings this month, after firms with a multifamily residential specialization saw flat to modestly increasing billings in March and April.
In addition, the inquiries index fell below 50 for the first time in four months. The value of newly signed design contracts also weakened to its lowest level since January.
“The uncertainty created by the Iran conflict, and substantially higher energy costs, weighed on architect billings in May”, said AIA Chief Economist, Richard Branch. “Higher interest rates, rapidly rising material costs, and continued labor shortages all contributed to softer demand.”
Key ABI highlights for May include:
- Regional averages: South (49.6); Northeast (46.2); West (45.4); Midwest (45.3);
- Sector index breakdown: multifamily residential (49.2); institutional (46.9); commercial/industrial (45.5); mixed practice (firms that do not have at least half of their billings in any one other category) (44.1)
- Project inquiries index: 49.4
- Design contracts index: 45.0
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
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About Deltek
Better software means better projects. Deltek is the leading global provider of enterprise software and information solutions for project-based businesses and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 Architecture & Engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Our industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue. Learn more at Deltek.
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The ABI fell from 49.8 in March, when billings were essentially flat, to 48.3 in April, signaling that more firms reported declining billings than rising billings.
Architecture firm billings showed signs of stabilization in February after months of decline, with an AIA/Deltek Architecture Billings Index® (ABI) score of 49.4—up from 43.8 in January, indicating a
