Architectural firm billings continued to decline in July as firms struggled to convert inquiries into projects, according to the AIA/Deltek Architecture Billings Index, which weakened with a lower score from the previous month.

According to the report, the index fell slightly from 46.8 in June to 46.2 in July. That indicates that a majority of firms are still experiencing declining billings, the report said.

The Midwest region’s index score in July was 45.1, the lowest of the regions measured by the index.

And while inquiries into new work grew slowly, following a three-month pause earlier this year, design contract values fell again in July as firms continue to struggle to turn inquiries into projects, a challenge that has persisted for more than 2½ years, the report said.

Billings have been negative for 31 of the last 34 months.

Jessica Reinert, executive director of AIA Iowa, said the Midwest region is particularly feeling the effects of the decline in billings.

“This indicates that our regional architecture firms are facing a significant and ongoing challenge,” she said in a news release. “We remain hopeful that the steady increase in inquiries— from a low of 43.9 in March — will eventually translate into new projects. But for now, the data reflects a tough business environment for our architects.”

Other highlights from the July report include:

• Regional index averages: Northeast (47.8); South (47.5); West (46.4); Midwest (45.1)
• Sector index breakdown: Institutional (47.9); commercial/industrial (49.9); mixed practice (firms that do not have at least half of their billings in any one other category) (42.8); multifamily residential (43.7)
• Project inquiries index: 53.4
• Design contracts index: 47.9