Architecture market remains grim despite Midwest bright spot

by ciara_lalor-lindo | September 23, 2026 3:46 pm

The AIA[1]/Deltek Architecture Billings Index (ABI) score for the month was 47.2. While slightly fewer firms reported a decline in billings in August than in July, the majority continued to report weak business conditions.

The ABI is a leading monthly economic indicator based on billings at U.S. architecture firms and is used to predict nonresidential construction activity 9 to 12 months in advance.

ABI scores greater than 50 indicate growth, while scores below 50 indicate contraction.

New project inquiries rose modestly this month, but the value of newly signed design contracts continued to decline. Architecture firms are also less optimistic about future billings: 25% expect an increase in the fourth quarter, down from 31% in the second and 30% in the third. Meanwhile, 29% expect billings to decline, up from 21% at the end of the first quarter, according to AIA.

Despite overall billing declines, Midwest firms saw modest growth for the first time in nearly a year, while West Coast billings were flat. Northeast billings fell sharply to their lowest level since 2020. By specialization, commercial/industrial firms saw a slight increase in August, but conditions remained weak in other sectors.

According to AIA, economic conditions remained mixed in August. Nonfarm payrolls added 162,000 jobs, while architectural services added 700 positions in July. Inflation also rose, with CPI up 0.4% in August and 3.4% year over year, driven partly by higher gasoline and energy costs. In response, the Federal Reserve raised interest rates by a quarter point in September, its first increase in three years, to help bring inflation toward its 2% target.

— With files from AIA

Source URL: https://www.metalarchitecture.com/news/industry-news/architecture-market-remains-grim-despite-midwest-bright-spot/

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