Following a score approaching growth earlier this year, the AIA/Deltek Architecture Billings Index® (ABI) score for May declined to its lowest level since January, with a score of 44.5. This is likely a reflection of the softness in the economy due to the Iran conflict, as higher gas prices and inflation have led some clients to pause new projects.
Billings remained closest to growth at firms located in the South, following the trend for most of the year thus far. However, billings weakened significantly at firms located in the West, which had also been close to growth earlier this year.
Firms of all specializations reported declining billings in May, after firms with a multifamily residential specialization saw flat to modestly increasing billings in March and April. Business conditions continued to weaken at firms with an institutional specialization, even though they also reported growth in March.
In addition, the inquiries index fell below 50 for the first time in four months. The value of newly signed design contracts also weakened to its lowest level since January.
“The uncertainty created by the Iran conflict, and substantially higher energy costs, weighed on architect billings in May”, said AIA Chief Economist Richard Branch. “Higher interest rates, rapidly rising material costs, and continued labor shortages all contributed to softer demand.”
In addition, architect sentiment about future work also declined this quarter. At the end of the first quarter of 2026, 21% of responding firm leaders reported that they expected their firm’s billings to decline by 5% or more in the second quarter. Now, one quarter of firm leaders expect their billings to decline in the third quarter. Nearly half (46%) expect their billings to remain about the same, while 30% expect their billings to increase by 5% or more.
Key ABI highlights for May include:
- Regional averages: South (49.6); Northeast (46.2); West (45.4); Midwest (45.3);
- Sector index breakdown: multifamily residential (49.2); institutional (46.9); commercial/industrial (45.5); mixed practice, or firms that do not have at least half of their billings in any one other category (44.1)
- Project inquiries index: 49.4
- Design contracts index: 45.0
The regional and sector categories are calculated as three-month moving averages and may not always average out to the national score.
About the American Institute of Architects
Founded in 1857, the American Institute of Architects (AIA) consistently works to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through more than 200 international, state and local chapters, AIA advocates for public policies that promote economic vitality and public wellbeing. AIA provides members with tools and resources to assist them in their careers and business, as well as engaging civic and government leaders and the public to find solutions to pressing issues facing our communities, institutions, nation, and world. Members adhere to a code of ethics and conduct to ensure the highest professional standards.
About Deltek
Deltek is a leading global provider of enterprise software and information solutions for project-based businesses, and the home of AIA MasterSpec®. More than 30,000 organizations, including 12,000 architecture and engineering firms, rely on Deltek for superior levels of project intelligence, management, and collaboration. Deltek’s industry-focused expertise powers project success for A&E firms of all sizes by helping them achieve performance that maximizes productivity and revenue.
 score for May declined to its lowest level since January, with a score of 44.5, likely a reflection of the softness in the economy due to the Iran conflict.){kind=link}