Working Conditions in Architecture Firms in the U.S. Begin to Improve

In the U.S., architecture firms saw an increase in billing for the first time in October after a consecutive 20-month decline. The architecture billings index prepared by the American Institute of Architects (AIA) rose from 45.7 points to 50.3 points in October, managing to slightly exceed the threshold value of 50 points.

An index above 50 indicates an increase in billing for firms, while a value below 50 signifies a decline. The announcement mentioned significant changes in business conditions nationwide during October, noting, "Firms in the Northeast experienced a greater decline in billing since September, while firms in the South reported growth in billing for the first time in two years."

The value of inquiries for projects and newly signed design contracts decreased from 48.3 points to 45.7 points in the same month. The announcement stated, "Despite the declining interest rates and inflation, clients continue to hesitate to start new projects. The value of newly signed design contracts weakened further in October, marking the seventh consecutive month of decline. Firms responding this month indicated that many clients are waiting for the results of the November elections at both the national and local levels before deciding how to proceed with new projects."

The AIA noted that architecture firms are becoming more optimistic about their revenues heading into 2025.