Architectural firms saw an increase in inquiries, but still saw a decline in billings as business conditions remained soft at the start of the fourth quarter, an industry survey showed.

According to the American Institute of Architects’ Architectural Billings Index, released Nov. 20, firms continue to face challenges as new design contracts continued to fall.

The index showed that the index’s score rose to 47.6 in October, up from 43.3 in September. The slight rise indicated that while a majority of firms still saw a decline in billings, the share was smaller than it was the previous month, the report showed.

The Midwest fared slightly better than the national score, said Jessica Reinert, executive director of AIA Iowa.

“While the latest national Architecture Billings Index report from the AIA reflects continued soft business conditions for firms across the country, we are encouraged by the distinct resilience shown in the Midwest regional score of 49.6,” she said. “This score, which is the highest among all regions and nearly at the 50-point mark for stability, indicates that our Iowa architecture firms are navigating current market challenges with greater relative strength compared to the national trend of 47.6.”

Regional and sector scores are calculated on a three-month moving average and may not average out to the national score.

Highlights from the Nov. 20 report include:

• Regional averages: Midwest (49.6); South (45.3); Northeast (45.1); West (42.1)
• Sector index breakdown: multifamily residential (46.8); commercial/industrial (43.9); institutional (46.1); mixed practice (firms that do not have at least half of their billings in any one other category) (44.0)
• Project inquiries index: 54.8
• Design contracts index: 47.1