The American Institute of Architects/Deltek Architecture Billings Index reported a score of 43.6 for the month of March, indicating business conditions continue to soften for architecture firms. This marks the 14th consecutive month of declining billings at firms as inflation, supply chain issues and other economic challenges continue to affect business.
“Elevated construction costs coupled with prolonged high interest rates continue to discourage new project activity,” says AIA Chief Economist Kermit Baker. However, institutional design work seems to have stabilized, providing a solid base for the profession as it awaits a more positive economic environment for construction.
All regions of the country reported a decline in billings, with business conditions looking the softest this month at firms in the Midwest and the South. While there was a decline in billings for firms of all specializations, billings declined at a faster pace for firms with a commercial/industrial specialization.
The ABI score is a leading economic indicator of construction activity, providing an approximately nine-to-12-month glimpse into the future of nonresidential construction spending activity. The score is derived from a monthly survey of architecture firms that measures the change in the number of services provided to clients.
