AIA: Business Conditions for Architecture Firms Continue to Weaken

WASHINGTON (Aug. 20, 2025) — The American Institute of Architects (AIA)/Deltek Architecture Billings Index (ABI) continues to weaken posting a score of 46.2 for July, down from 46.8 in June, indicating that a majority of firms are still experiencing declining firm billings.  

Inquiries into new work grew slowly but steadily this month, following a brief three-month pause earlier this year. However, design contract values fell again in July as firms struggle to convert inquiries into projects — a challenge persisting alongside declining billings for over two and a half years. Billings have been negative for 31 of the last 34 months.  

“Business conditions remain challenging for architecture firms nationwide, with billings declining across all regions in July,” said Kermit Baker, Ph.D., AIA chief economist. 

“Client inquiries into new projects continue to build. Still, while commercial and institutional sectors show some signs of stability, the multifamily residential sector still is facing significant headwinds.”

Key ABI Highlights for July

• Regional averages: Northeast (47.8); South (47.5); West (46.4); Midwest (45.1)
• Sector index breakdown: institutional (47.9); commercial/industrial (49.9); mixed practice (firms that do not have at least half of their billings in any one other category) (42.8); multifamily residential (43.7)
• Project inquiries index: 53.4
• Design contracts index: 47.9

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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