Business conditions at architecture firms remained soft as the fourth quarter of 2025 began, according to the latest data from the American Institute of Architects’ (AIA) Architecture Billings Index (ABI).
The ABI score rose to 47.6 in October from 43.3 in September, indicating that while a majority of firms still saw a decline in their billings, the share was smaller than it was last month. Inquiries into new projects also saw their most significant increase in a year and a half. Despite this positive movement, challenges persist as the value of new design contracts decreased again.
“Architecture firms estimate that billings declined modestly this year. Unfortunately, they are not expecting a significant turnaround in 2026,” says Kermit Baker, PhD, AIA chief economist. “About a third of firms nationally project that their billings will increase this coming year, and a slightly higher share expect them to remain about the same. Firms with a multifamily specialization are the most optimistic about prospects for 2026.”
Key ABI highlights for October include:
• Regional averages: Midwest (49.6); South (45.3); Northeast (45.1); West (42.1)
• Sector index breakdown: multifamily residential (46.8); commercial/industrial (43.9); institutional (46.1); mixed practice (firms that do not have at least half of their billings in any one other category) (44.0)
• Project inquiries index: 54.8
• Design contracts index: 47.1
