Architecture Firms Continue Lengthy Billings Slump
June's modest gain offered encouragement, yet most architecture firms still faced weaker demand
THE MOST RECENT REPORT: July 22, 2026
The AIA Architecture Billings Index® (ABI) score was 47.3 for June. Although the score improved by nearly three points from May, it remained in negative territory, indicating most firms reported a decline in billings.
Inquiries increased in June after a slight decline in May and the value of newly signed design contracts was just below 50, meaning it was essentially flat, with nearly equal shares of firms reporting decreases and increases. Backlogs also declined slightly in the second quarter, falling to an average of 6.3 months from 6.6 months in the first quarter. The sharpest decline was among small firms with annual billings of less than $250,000, where backlogs fell from an average of 4.9 months to 3.1 months.
“Architecture firms remain mired in one of the longest running downturns in the 30-plus year history of the ABI, which now stretches to 41 months without a majority of firms reporting billings growth,” said AIA Chief Economist, Richard Branch. “The uncertainty over the conflict in Iran along with high interest rates and significant labor shortages will continue to weigh on construction – and architect billings over the next several months.”
Key ABI highlights for June include:
- Regional averages: South (49.5); West (45.6); Midwest (45.1); Northeast (44.9);
- Sector index breakdown: institutional (47.4); commercial/industrial (46.7); multifamily residential (45.6); mixed practice (firms that do not have at least half of their billings in any one other category) (42.7)
- Project inquiries index: 56.1
- Design contracts index: 49.8
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.
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)
National Architecture Billings Index
Source: The American Institute of Architects (AIA)
RELATED: Historical ABI Data 2008 - 2022 »
Don’t miss the next big ABI update…Click here to subscribe to the inside.lighting InfoLetter |
Regional Architecture Billings Index
(Three month rolling average)
Source: The American Institute of Architects (AIA)
Sector-Specific Architecture Billings Index
Three-month rolling average
Commercial/Industrial
Buildings related to commerce and industry. Office space, banks, retail, factories, etc.
Institutional
Schools, civic/government buildings, museums, hospitals, etc.
Multifamily Residential
Town homes, apartment complexes, condominiums, etc.
Mixed Practice
Firms that do not have at least half of their billings in any one other category.
Source: The American Institute of Architects (AIA)
Architecture Billings Index® is a registered trademark of The American Institute of Architects
Don’t miss the next big ABI update…Click here to subscribe to the inside.lighting InfoLetter |
