Manufacturers/End Users
May 20, 2026
AIA: ABI slips in April as economic uncertainty deepens
Written by Laura Miller
Architecture firm billings retreated modestly in April, with the American Institute of Architects (AIA) reporting another month below the growth threshold.
The AIA/Deltek Architecture Billings Index (ABI) fell to 48.3 in April, down from 49.8 in March, signaling that “the share of firms that reported a decline in billings was greater than the share that reported an increase,” according to the report. National billings have not topped 50 since January 2023.
A reading below 50 indicates decreasing billings, while a reading above that suggests increasing billings.
Inquiries into new projects rose for the third straight month, and design contracts hovered near growth territory – an early sign that activity could stabilize later this year, AIA said.
But conditions remained soft across all regions. Firms in the West were again the least likely to report declines, with an index reading of 49.0 up 0.4 points from March. At the same time, the South, with an index reading of 47.7 down 0.7 points m/m, saw billings weaken after showing early-year momentum. The Midwest’s April reading of 48.0 was down by 0.8 points, while the Northeast’s 47.2 was up by 0.4 points.
Sector performance was mixed. Commercial and industrial firms continued to post declines and remain “one of the weakest sectors for the last six months,” according to AIA. The sector’s April reading came in at 48.9. Institutional and multi-family residential firms, however, reported modest growth in April, with readings of 51.5 and 51.1, respectively, suggesting some new project opportunities are emerging.
Broader economic instability continues to weigh on design activity. With the conflict in Iran and the closure of the Strait of Hormuz pushing energy prices higher, inflation rose 0.6% month on month and 3.8% year over year in April. Architectural services employment also slipped by 600 jobs in March, the first decline of 2026. “Energy prices are unlikely to decline significantly until the Iran conflict ends,” the report noted.
This month’s survey also explored firms’ international work. Only 9% of respondents reported any international billings over the past five years, though that share rose to 21% among large firms. Of those doing international work, 54% reported projects in East Asia and the Pacific (excluding China), and 50% reported work in Canada. On average, international projects accounted for 6.5% of gross billings over the past year.
While nearly half of firms with international work said their billings share is unchanged from a year ago, 35% reported an increase. Still, most firms have no plans to pursue international projects, citing “the potential headaches of international projects” and a strong supply of domestic work.
The ABI is important to the steel industry as it is a leading indicator of nonresidential construction activity, projecting business conditions in the sector approximately 9-12 months in the future (the usual lag between architectural billings and construction spending).
