Architecture billings weaken further in May as inquiries and contracts decline

After softening again in April, business conditions at U.S. architecture firms deteriorated more significantly in May, according to the latest AIA/Deltek Architecture Billings Index.

Released this morning, the May ABI score fell to 44.5, down sharply from April's 48.3 and marking the lowest national reading since January. Any score below 50.0 indicates a decline in billings compared to the previous month.

The report suggests that ongoing economic uncertainty, including inflationary pressure tied to higher energy prices and the conflict in Iran, is continuing to cause some clients to delay or pause new projects. New project inquiries also slipped below 50.0 for the first time in four months, while the value of newly signed design contracts weakened to its lowest level since January.

Firm leaders also appear less confident about the coming quarter. According to the AIA, one quarter of responding firm leaders now expect their billings to decline by 5 percent or more in the third quarte...