Despite previously lingering near the threshold of a positive score in March and April, the American Institute of Architects’ AIA/Deltek Architecture Billings Index (ABI) fell from 48.3 to 44.5 in May. The inquiries index also fell below 50, indicating a negative score, for the first time in four months, while the value of newly signed contracts also slipped to its lowest rating since January 2026. Inflation, higher gas prices, and the ongoing conflict in Iran are each cited as factors in the pause of new projects.
Sentiments toward future work also declined during this quarter. Despite 21 percent of responding firm leaders reporting that they expected firm billings to decline by 5 percent or more during the second quarter of 2026, now a quarter of leaders expect billings to decline in the third quarter of the year. A whopping 46 percent of leaders expect billings to remain about the same, while 30 percent anticipate billings will increase by 5 percent or more. Business conditions remained soft overall nationwide, though billings in the South were reported as approaching growth once again. Billings weakened significantly at firms in the West and firms of all specializations reported declining billings this month as well.
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