TL:DR

‘In February, the AIA’s Architecture Billings Index reported a decline, but trends indicate stabilization may be on the horizon. ` In February, the score was 49.5, up from 43.8 the previous month—any number below 50 indicates a decline in billings.

In its report the AIA noted that “global economic uncertainty” remains a factor affecting billings. In spite of this, architecture firms reported an increase in new project inquiries in the month of February, a promising uptick. However, the design contracts index “slowed significantly.”

For February’s report, the AIA introduced what it is calling “a new quarterly ABI question” that asks firms to anticipate how their gross billings and billable work will compare between the current quarter and the next one.

The data collected this time around found that 48 percent of firms expect their billings to “remain steady” in Q2 of 2026, while 31 percent anticipate a 5 percent or greater increase, and 21 percent foresee a 5 percent or greater decrease in billings.

In addition to the national average, the AIA shared billing data from four regions across the country. As in January, the South reported an increase in billings noted by its strong 50.0. The region with the lowest-reported billings was again the Northeast, 41.9.

The AIA also shared insights into unemployment data in the wider economy. It noted that the profession has fared decent in this aspect.

“While the ABI data shows some positive trends, the broader economy continues to struggle, with unemployment increasing in February,” said AIA chief economist, Richard Branch, in a statement. “However, architectural services employment remained steady in January at 204,600, up nearly 2,000 positions from a year ago.”

The onset of the conflict and ongoing war in Iran has lowered stocks and promises a surge in energy and oil prices that is bound to eventually trickle its way into affecting the AEC industry.

My Thoughts 💭My Thoughts 💭

Wish the data was showing more recovery but 21% are expecting lower Billings. Growth is getting harder to accomplish during this administration. Too much uncertainty is causing projects to balk.

I thought things would get way better before the midterms but I don’t think that is going to happen.