The AIA/Deltek Architecture Billings Index® (ABI) slipped further into contraction territory in April, reflecting continued softness in architectural business conditions across the United States. The index fell from 49.8 in March,when billings were essentially stable, to 48.3 in April, indicating that more firms reported declining billings than growth. This marks another month below the 50-point threshold, which separates expansion from contraction, extending a downturn that has persisted since January 2023.

Across regions, conditions remained weak with no area reporting overall growth. The West performed relatively better, with a score of 49.0 and the lowest level of decline for the third consecutive month. The Midwest (48.0), South (47.7), and Northeast (47.2) all remained in contraction, with the South showing renewed softening after early signs of stabilization earlier in the year.

Performance also varied by project type. Institutional (51.1) and multifamily residential (51.5) firms showed modest growth, suggesting early momentum in public-sector and housing-related projects. In contrast, commercial and industrial firms (48.9) continued to struggle, remaining one of the weakest segments over the past six months. Mixed-practice firms reported the lowest reading at 42.5, highlighting ongoing pressure in diversified practices.

Despite weak billing conditions, forward-looking indicators offered some cautious optimism. The project inquiries index rose to 57.7, marking the third consecutive month of growth in new interest. Similarly, the value of new design contracts remained close to stabilizing at 48.0, suggesting that future project pipelines may be strengthening even as current billings lag.

According to American Institute of Architects Chief Economist Richard Branch, the mixed economic environment reflects competing pressures, including steady job growth alongside rising inflation driven by higher energy costs. While temporary policy measures such as fuel tax relief have been discussed, sustained improvement in costs and demand will likely depend on broader geopolitical and energy market stabilization.