Architecture billings decline as business conditions weaken

The Architecture Billings Index (ABI) for September 2026 indicates a further weakening in the sector, with a score of 44.7. This represents the largest share of firms reporting declining billings since May. While project inquiries saw a modest increase, the value of newly signed design contracts continued to fall.

According to AIA Chief Economist Richard Branch, the environment is becoming increasingly difficult for architecture firms due to a soft economy, financing challenges, and cautious clients. Near-term improvement is considered unlikely as fewer projects move forward.

Firm backlogs have also decreased from 6.6 months at the end of the first quarter to an average of 6.2 months by the end of the third quarter. The decline was most pronounced in the multifamily residential specialization, where backlogs dropped from 6.2 months in March to 4.8 months in September. Regional business conditions were mixed, with softness in the Northeast and South, while firms in the West and Midwest reported flat billings.