The Architecture Billing Index was flat in October, reaching a positive score after 20 consecutive months of decline, the American Institute of Architects and software firm Deltek announced Nov. 20.
The ABI, which measures nonresidential construction nine months to a year ahead, rose to 50.3 in October. A turnover score above 50 represents an increase in turnover for architecture firms compared to the previous month, while a lower score indicates a decline.
“Invoicing finally stabilized this month and companies are feeling more optimistic about revenue projections for 2025,” Kermit Baker, AIA’s chief economist, said in a statement.
For this year, 41% of companies surveyed by the AIA said they expect their net income to end above last year’s, with an average growth of 0.4% expected. Even so, 36% of companies expect less revenue this year than last year. But more companies are optimistic about next year.
Companies forecasting growth in 2025 expect higher growth than this year, with an average of 1%. In response to the AIA survey, they point to falling interest rates and a more favorable lending environment as factors, as well as their own current backlogs and inquiries for new projects. Fewer companies, 26%, expect even less revenue next year, according to AIA.
“Overall, 41% of responding business leaders expect to see net income growth from 2024 to 2025, with 32% projecting growth between 5% and 9%,” Baker said.
Regionally, the South saw the only positive turnover score in October, at 52.1. The West and Midwest improved from September, rising to 47.6 and 46.9, respectively, while billings in the Northeast dipped slightly to 45.6.
Among sectors, firms specializing in institutional work had the highest turnover score at 50.5. They also improved billing for architects focused on commercial/industrial and multi-family residential work from Septemberbut remained weak, with scores of 47.0 and 45.6, respectively.
