AIA Architecture Billings Index Nears Growth Threshold in March

The American Institute of Architects (AIA) reported a March Architecture Billings Index (ABI) score of 49.8, the closest to the 50-point growth threshold since early 2023. This follows February's 49.5 and a January low of 43.8. While overall billings remain down, the March score indicates near-equal shares of firms reporting increases and decreases. New project inquiries rose to 56.8, though design contracts slipped to 47.8. The project backlog averaged 6.6 months. Regionally, the West scored 50.6 (increase), the Midwest 49.4, and the Northeast 44.2 (decline). AIA Chief Economist Richard Branch warned that global conflicts, including the Iran conflict and labor shortages, pose risks to recovery. The AIA expressed cautious optimism, noting that rising energy prices and inflation could challenge sustained growth.