Washington, D.C. – The latest data from the American Institute of Architects (AIA) reveals a continued downturn in architectural billings, signaling persistent headwinds for the nonresidential construction sector. According to the April Architecture Billings Index (ABI), the reading dropped to 43.2, a further decrease from March’s 44.1. This sustained decline, where a score below 50 indicates a contraction in billings, underscores an ongoing period of economic uncertainty that is restraining new construction projects.
The ABI, a leading economic indicator for future nonresidential construction activity, paints a clear picture: new project inquiries have fallen for the third consecutive month, and the value of new design contracts has decreased at most firms for the 14th straight month. This trend has seen overall billings decline in 28 out of the past 31 months.
Despite this continued retraction, the architectural industry has demonstrated remarkable resilience. As AIA chief economist Kermit Baker notes, “Uncertainty as to the economic outlook continues to hold back progress on new construction projects.” However, he adds, “Despite the slowdown in billing activity, architecture firms continue to navigate this business cycle quite effectively, as staffing at firms remains relatively stable and project backlogs are holding up better than expected.” This suggests that while new work is slow to materialize, firms are managing existing projects and maintaining their workforce effectively, preventing a more severe impact on the industry.
Regional and Sectoral Insights: 
April’s ABI highlights indicate a widespread decline across all regions:
- South: 46.2
- Midwest: 44.4
- West: 42.1
- Northeast: 40.2
Sector-specific performance also reflects the general downturn:
- Institutional Market: 46.3
- Mixed Practice: 47.6
- Commercial/Industrial Sector: 40.5
- Multifamily Residential Market: 40.8
Furthermore, the project inquiries index stood at 48.0, and the design contracts index was 43.3, reinforcing the pervasive nature of the slowdown.
While the April ABI report presents a challenging outlook for new construction, the stability within architectural firms and the resilience of project backlogs offer a glimmer of optimism. The industry continues to adapt to the prevailing economic climate, awaiting a clearer path forward for renewed growth in the nonresidential sector.
Source: ABI with additional information added by GlassBalkan
