Industry momentum that pushed the American Institute of Architects monthly billing index for upcoming nonresidential work into growth mode in October could not be maintained last month—with the index falling to 49.6, the association reported.
A below-50 score on the AIA/Deltek Architecture Billing Index marks a decline in business, said AIA, noting it had been at 50.3 in October and had largely stabilized in the past two months after posting declines for almost two years.
Interest in planning new projects has begun to increase, but new contracts continued to decline for the eighth month in a row. The project inquiries index reported a rate of 54.1, while the design contracts index came in at 48.3.
Regionally, the west reported an index of 54.3, the highest score, while the lowest, 46.9, came from the northeast. The southern region registered a flat 50, with the midwest slightly lower at 48.1.
“Given the extended weakness in business conditions at architecture firms, increasing firm profitability remains the top concern for 2025, with one-third of firm leaders selecting it as a major issue—the highest since 2017,” said Kermit Baker, AIA chief economist. Negotiating project fees ranked second among other top respondent issues, chosen by 21%, while 20% identified the need to find new clients and markets or improving business planning and marketing up from 18% last year, he noted.