Architecture Billings Index

 
According to the AIA, architectural firms report slowing new project demand despite Federal Reserve rate cuts, with design contract values declining for the sixth consecutive month in September. Backlogs remain robust at 6.4 months - above pre-pandemic levels - while billings softened, especially in the multifamily residential and commercial/industrial sectors. Reconstruction projects, however, are rising, with 39% of firms reporting increased demand for retrofits, adaptive reuse, and system upgrades. Renovations often target HVAC, lighting, and interior updates. Broader economic conditions are improving, with inflation declining to 2.4% year on year and 254,000 new jobs created in September, including 25,000 in construction, supporting a cautiously optimistic outlook. tinyurl.com/ABIndex-2024