Architecture firms continue to face soft business conditions

WASHINGTON – September 24, 2025 – In August, architecture firms experienced continued softness, with an AIA/Deltek Architecture Billings Index (ABI) score of 47.2. While the share of firms reporting declining billings slightly decreased from July, the overall trend remains downward.

The value of new design contracts fell for the 18th consecutive month in August, marking the longest decline in 15 years of data collection. This year has been characterized by soft inquiries and a steady drop in newly signed design contracts, as clients remain hesitant to commit to new projects. With limited new work ahead, many firms are expected to face continued declines in billings in the months to come.

“While business conditions remained soft at architecture firms nationally, there are signs that the downturn may be bottoming out,” said Kermit Baker, PhD, AIA Chief Economist. “Inquiries for new projects have increased four straight months, and billings both at firms with a multifamily or commercial/industrial specialization are beginning to stabilize.”

Key ABI highlights for August include:
•    Regional averages: South (49.9); Midwest (48.0); Northeast (46.2); West (43.5)
•    Sector index breakdown: commercial/industrial (50.8); multifamily residential (49.9); institutional (44.5); mixed practice (firms that do not have at least half of their billings in any one other category) (43.3)
•    Project inquiries index: 50.3
•    Design contracts index: 47.2

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 AIA
Founded in 1857, AIA consistently works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through more than 200 international, state, and local chapters, AIA advocates for public policies that promote economic vitality and public well-being.

AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders and the public to find solutions to pressing issues facing our communities, institutions, nation, and world. Members adhere to a code of ethics and conduct to ensure the highest professional standards.

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.