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Architecture Billings Remained Sluggish in August

Design firms face persistent inflation and high borrowing costs as national billings indices hover below growth territory.

Updated on Sept. 23, 2026 in Inflation

Bold flat-color editorial illustration of a vertical steel I-beam on a plinth, symbolizing the structural pressure on the architecture industry.
The AIA/Deltek Architecture Billings Index remained in contraction territory at 47.2 in August, as architecture firms grapple with persistent inflation and elevated borrowing costs. AI Illustration. Upload story photo >

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The AIA/Deltek Architecture Billings Index reached 47.2 in August, a marginal increase from 46.6 in July, indicating continued contraction in design activity. This data coincides with a 0.4 percent increase in the Consumer Price Index for August.

Why it matters

Architecture firms are managing the dual pressure of elevated borrowing costs and inflation, which collectively continue to dampen demand for new design projects. These market conditions are forcing nearly a third of firms to brace for further declines in billings by the end of the third quarter.

The August Architecture Billings Index score reached 47.2, up from 46.6 in July, while the annual Consumer Price Index rose 3.4 percent. Despite these headwinds, architecture services added 700 positions in July.

The players

AIA

The American Institute of Architects is a professional trade organization representing the interests of architects and design firms in the United States.

Deltek

Deltek is a provider of enterprise software and information solutions for project-based businesses, including architecture and engineering firms.

Bureau of Labor Statistics

The Bureau of Labor Statistics is the principal federal agency responsible for measuring labor market activity and price changes.

The details

Architecture firms calculate the index based on monthly billings data, where any score below 50 indicates a contraction in billings. While firms in the Midwest showed relative strength with a score of 50.7, other regions remained in contraction, with the Northeast falling to 40.7, its lowest level since 2020. Firms are increasingly cautious, with 29 percent of respondents anticipating further billing declines in the coming months as inflation drives up operational and project costs.

Timeline

  1. • August 2026: The ABI score reached 47.2.

  2. • July 2026: The ABI score was 46.6 and 700 jobs were added.

  3. • 2020: Northeast billings reached their lowest level since this year.

Market Landscape

The Northeast regional index reaching its lowest level since the 2020 economic downturn illustrates the severity of current regional performance gaps. This trend follows a pattern where elevated borrowing costs disproportionately impact design activity across different geographic markets.

Operators should monitor local billing trends as a lead indicator for construction and development pipelines. With 29 percent of firms anticipating further declines, management should prepare for potential project delays and reduced procurement activity in the coming quarter.

The takeaway

The architecture sector is showing clear signs of contraction linked to broader inflationary pressures and high cost of capital. Owners should adjust short-term revenue forecasts and monitor regional ABI performance as a barometer for regional development demand.

Further reading

For broader trends on price indices and economic impacts, visit the Inflation section.

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