Architecture Firms See Early Signs of Billing Stabilization

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Northeast region and commercial/industrial sector still lagging more than others

THE MOST RECENT REPORT: March 18, 2026

WASHINGTON – Architecture firm billings showed signs of stabilization in February after months of decline, with an AIA Architecture Billings Index (ABI) score of 49.4—up from 43.8 in January, indicating a slight majority of firms reported declining billings.

Inquiries rebounded after a January dip, and while newly signed design contracts continued to decline, the rate of decline slowed significantly. These trends suggest potential stabilization, though global economic uncertainty could disrupt progress. Regionally, billings remained flat in the South for the second month but declined elsewhere, with the Northeast particularly affected by winter storms. Across specializations, billings continued to decline, although institutional firms' billings remained nearly flat.

AIA introduced a new quarterly ABI question asking firm leaders to predict how their firm's gross billings/billable work will compare between the current and next quarter. Nearly half (48 percent) of firm leaders expect billings to remain steady in Q2 2026 compared to Q1. About 31 percent anticipate a 5 percent or greater increase, while 21 percent foresee a 5 percent or greater decrease.

“While the ABI data shows some positive trends, the broader economy continues to struggle, with unemployment increasing in February,” said AIA Chief Economist, Richard Branch. “However, architectural services employment remained steady in January at 204,600, up nearly 2,000 positions from a year ago.”

Key ABI highlights for February include:

Regional averages: South (50.0); West (47.2); Midwest (46.3); Northeast (41.9)
Sector index breakdown: multifamily residential (48.2); institutional (49.2); commercial/industrial (45.7); mixed practice (firms that do not have at least half of their billings in any one other category) (41.8)
Project inquiries index: 52.3
Design contracts index: 48.0

Regional and sector categories are measured as three-month moving averages and may not align with the national score.

Inside Lighting strives to accurately report certain data on the day it is reported by the AIA, but updates to past data with new three-month rolling averages might not be made. For official and most current reports, refer to the AIA ABI numbers. All ABI data is sourced from the AIA.

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Interpreting the ABI:

The Architecture Billings Index (ABI) is a leading economic indicator of construction activity. It is produced by the American Institute of Architects (AIA) and it reflects the approximate nine-to-twelve month lead time between architecture billings and construction spending.

The ABI is based on a monthly survey of architecture firms that asks respondents to rate the level of their billings (or the amount of new design contracts) as either "increase," "decrease," or "no change" from the previous month. The results are then compiled into an index, where a score above 50 indicates an increase in billings, and a score below 50 indicates a decrease in billings.

The ABI is widely used in the construction industry, as well as by economists and analysts, to track the health of the construction market and to forecast future building activity. It is considered a leading economic indicator because changes in architecture billings often precede changes in overall economic activity, such as employment and GDP.

The ABI provides a snapshot of the demand for design services as well as an indication of the near-term outlook for the construction industry.

The survey panel asks participating architectural firms whether billings increased, decreased or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month.

An index score of 50 indicates no change in firm billings versus the previous month.
A score above 50 indicates an increase in firm billings versus the previous month.
A score below 50 indicates an decrease in firm billings versus the previous month.
NOTE: Index numbers cited for the last three reported months are preliminary.
The regional and sector categories are calculated as a 3-month moving average, whereas the national index, design contracts and inquiries are monthly numbers.

Source: The American Institute of Architects (AIA)