en.Wedoany.com Reported - The American Institute of Architects' Architecture Billings Index fell to 44.5 in May, its lowest point of the year. A reading above 50 indicates growth in billings, but the index has remained below this level since January 2023.

AIA Chief Economist Richard Branch stated that the Iran conflict and rising energy costs were the main reasons for the significant decline in billings in May. Meanwhile, new design inquiries decreased after four consecutive months of growth, and the value of new design contracts fell to its lowest level since January.

In a statement, Branch noted that uncertainty stemming from the Iran conflict and a sharp increase in energy costs weighed on architect billings in May. Higher interest rates, rapidly rising material costs, and persistent labor shortages collectively contributed to weak demand.

By region, the South came closest to growth in billings, with a score of 49.6 in May. By project type, firms focused on multifamily residential projects reported smaller declines in billings compared to those engaged in institutional, commercial/industrial, and mixed practices.

The AIA also surveyed respondent firms on their outlook for billings for the remainder of 2026. At the end of March, 21% of respondents expected billings to decline by 5% or more in the second quarter. Currently, one-quarter of firms anticipate a decline in billings in the third quarter. Additionally, 46% of firms expect billings to remain roughly flat, while 30% anticipate growth of 5% or more.

President Trump and Vice President JD Vance claimed this week that a "temporary agreement" with Iran would alleviate some of the financial pressures the conflict has placed on the United States and its economy.

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