Market Snapshot: Morrissey Goodale Confidence Index

Market Snapshot: Morrissey Goodale Confidence Index

Weekly market intelligence for AE and environmental industry leaders.

Despite geopolitical instability and economic uncertainty, architecture, engineering, and environmental consulting firm leaders are solidly optimistic about the industry’s continued growth.

That’s among the key findings in Morrissey Goodale’s inaugural AE Industry Quarterly Snapshot publication. Using data from our exclusive survey of AE and environmental consulting firm leaders about projected outlooks for project starts, headcounts, backlogs, RFP activity, and overall business outlook, Morrissey Goodale developed a weighted diffusion index measuring sentiment about the ensuing quarter—a score of 50 or above reflects a positive outlook, while a score below 50 indicates a negative outlook among survey respondents.

The Morrissey Goodale Confidence Index score of 59.0 for the second quarter of 2026 indicates continued robust industry expansion. Here are further details:

• When asked about the overall Q2 outlook compared to the prior quarter, nearly three times as many firm leaders express optimism than pessimism. More than 40% say they are “much more optimistic” or “somewhat more optimistic,” compared to 17% who say they are “much more pessimistic” or “somewhat more pessimistic.”
• AE firms continue to be in hiring mode—overwhelmingly. More than two-thirds (67%) of respondents expect to increase headcount in Q2, and only 3% forecast shedding any staff.
• Backlog expectations remain extremely healthy. Nearly 59% of respondents expect backlogs to increase in Q2, and less than 5% predict declining backlogs.
• Projections for RFP activity remain extremely positive. Forty-one percent of respondents forecast RFP to increase in Q2, while less than 10% expect RFP activity to fall.
• Project starts are the only index component in negative territory, creating a drag on sentiment. More than 35% of respondents report clients are delaying projects somewhat or significantly, and only 7% report clients are accelerating schedules.

Click here to download and read a free copy of Morrissey Goodale’s inaugural AE Industry Quarterly Snapshot for additional survey results, market intelligence, and data on AE industry M&A activity, private equity investment, and financial performance.

For questions about our market intelligence and research services, contact Rafael Barbosa.