Market Snapshot: Architecture Billings

Market Snapshot: Architecture Billings

Based on the latest architecture billings report from the American Institute of Architects (AIA) and Deltek, we see no major changes in the current business environment for architecture firms. However, recent news and employment data point to higher chances of Fed rate cuts in September, which may help improve conditions for firms later this year and into 2025. 

Billings for firms in the Northeast have been on an upward trend since the beginning of this year, ending the second quarter with an index score of 52.2. All other regions ended the second quarter below 50, which represents a decline from activity in the previous month. 

During the second half of 2023 and into 2024, the Midwest performed above other regions. However, in the last three AIA/Deltek Architecture Billings Index (ABI) readings, firms in Midwestern states reported weaker conditions. 

The weak conditions in the architecture industry are being experienced across all three major sectors, with a steeper decline observed in June for firms specializing in commercial and industrial projects. 

To learn more about market intelligence data and research services offered by Morrissey Goodale, schedule an intro call with Rafael Barbosa.