The architecture industry's billing activity continued its prolonged decline in April, with the AIA/Deltek Architecture Billings Index (ABI) dropping to 43.2 from March's 44.1, marking an acceleration in the downward trend that has persisted for over two years. An ABI reading above 50 indicates increasing billings, while readings below 50 suggest declining activity.

The latest figures underscore the sustained challenges facing architecture firms, with billings decreasing in 28 of the past 31 months since falling into negative territory following the post-pandemic construction boom. New project inquiries have now declined for three consecutive months, while the value of new design contracts has fallen at most firms for 14 straight months.

Economic uncertainty is dampening construction activity, according to AIA Chief Economist Kermit Baker, PhD, who noted that unclear economic prospects continue to delay new construction projects. Despite the billing downturn, Baker emphasized that architecture firms are managing the business cycle effectively, maintaining stable staffing levels and preserving project backlogs better than anticipated.

Regional performance varied significantly in April, with the South leading at 46.2, followed by the Midwest at 44.4. The West registered 42.1, while the Northeast lagged at 40.2. Among practice sectors, mixed-practice firms performed best at 47.6, with institutional work at 46.3. Commercial/industrial and multifamily residential sectors remained weaker at 40.5 and 40.8, respectively.

The project inquiries index reached 48.0, while the design contracts index stood at 43.3, both reflecting the industry's cautious outlook amid ongoing economic uncertainty.