Architecture firms in the U.S. are beginning to see early signs of stabilization after several challenging months, according to the latest report from American Institute of Architects (AIA) and Deltek. The February Architecture Billings Index (ABI) rose to 49.4, a notable improvement from January’s 43.8, though still below the 50-point threshold that indicates growth.

While billings remained in negative territory, the pace of decline slowed, suggesting that firms may be moving toward more stable ground. Project inquiries rebounded following a dip in January, pointing to renewed client interest, and although newly signed design contracts continued to fall, the rate of decline eased significantly.

Regional performance varied, with the South holding steady at 50.0 for the second consecutive month, while other regions saw declines. The Northeast experienced the sharpest drop, partly attributed to disruptive winter weather. Across sectors, billings remained under pressure, though institutional projects came close to stabilizing compared to other categories.

A newly introduced quarterly outlook survey from AIA provides further insight into industry sentiment. Nearly half (48%) of architecture firm leaders expect billings to remain stable in the second quarter of 2026. Meanwhile, 31% anticipate growth of at least 5%, and 21% expect a similar level of decline, reflecting a cautiously mixed outlook.

“While the ABI data shows some positive trends, the broader economy continues to struggle, with unemployment increasing in February,” said Richard Branch. Despite economic pressures, employment in architectural services remained steady at 204,600 in January, marking an increase of nearly 2,000 jobs compared to the previous year.

Key February ABI figures:

• Regional averages: South (50.0); West (47.2); Midwest (46.3); Northeast (41.9)
• Sector performance: multifamily residential (48.2); institutional (49.2); commercial/industrial (45.7); mixed practice (41.8)
• Project inquiries index: 52.3
• Design contracts index: 48.0

Although the ABI remains below growth levels, the February data points to a slowing downturn and tentative signs of recovery. However, ongoing economic uncertainty continues to cast a shadow over the pace and sustainability of this improvement.