Business conditions worsened at architecture firms in May 2026

by anthony_capkun_2 | 3 July 2026 2:06 pm

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After approaching growth earlier this year, the AIA/Deltek Architecture Billings Index (ABI) for May 2026 fell to its lowest level since January, with a score of 44.5.

The ABI is a leading monthly economic indicator based on billings at U.S. architecture firms that uses AIA data to predict nonresidential construction activity 9 to 12 months in advance.

ABI scores greater than 50 indicate growth, while scores below 50 indicate contraction.

AIA[2] says the weaker May reading likely reflects broader economic softness stemming from the ongoing Iran conflict, as higher gas prices and inflation prompted some clients to pause new projects.

This is also reflected in the inquiries index, which slipped below 50 for the first time in four months. The value of newly signed design contracts also weakened to its lowest level since January.

Architect sentiment about future work also declined this quarter. At the end of Q1 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, 1/4 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.

Business conditions were soft across the country in May. Billings remained closest to growth at firms in the South, as has been the case for most of the year. However, billings weakened significantly at West Coast firms, which had also been close to growth earlier this year.

Firms of all specializations reported declining billings this month, after firms specializing in multifamily residential projects reported 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.

Source URL: https://www.metalconstructionnews.com/news/business-conditions-worsened-at-architecture-firms-in-may-2026/

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