The American Institute of Architects (AIA) reported a slight improvement in the Architecture Billings Index (ABI) for October, with a score of 47.6, up from 43.3 in September. While the score still indicates a decline in billings, it suggests a slower rate of decline compared to the previous month. According to the AIA, any score below 50 signifies a drop in billings.
On a positive note, new project inquiries reported a strong month in October, with a score of 54.8. However, the value of design contracts continues to dwindle, a trend that has been ongoing.
AIA Chief Economist Kermit Baker noted that architects are not optimistic about a turnaround in the upcoming year, with about a third of firms nationally projecting an increase in billings and a slightly higher share expecting them to remain the same. Firms specializing in multifamily residential projects are the most optimistic about 2026.
Regionally, the Midwest reported a score of 49.6, while the West reported the steepest decline in billings, with a score of 42.1. In terms of building sectors, firms specializing in multifamily residential reported drops in billings, but not as severe as those concentrated on commercial/industrial and institutional projects.
The news comes amid a recent report from the U.S. Census Bureau, which found nonresidential construction spending dropped 1.5 percent year-over-year in August.
