A/E Services Growth Remains Modest Entering 2026

The Census Bureau released its 2026 1st Quarter Quarterly Services Survey (QSS). This data includes revenue for the design and engineering services performed by architecture and engineering companies.

The A/E services industry entered 2026 with measured growth, with Q1 2026 revenue increasing 1.9% year over year to $125.6B (seasonally adjusted).

Revenue increased 1.1% from Q4 2025, indicating continued expansion entering the year at a moderate pace consistent with recent quarters.

Macroeconomic conditions show modest improvement. The second estimate for Q1 2026 U.S. GDP increased to 1.6%, up from 0.5% in Q4 2025. At the same time, total construction put in place reached $2.17T in April 2026, rising 0.4% month over month and 0.9% year over year.

Overall, the A/E services industry continues to grow, but at a slower and more gradual rate, consistent with modest improvement in broader economic and construction activity.

With respect to labor, the industry continues to hire at a steady pace. In May 2026, total employment in A/E firms rose to 1.764M, up 2.4% year over year. Employment also increased 0.1% from April, indicating continued but modest monthly gains.

A/E employment growth is materially stronger than the broader labor market, with total nonfarm employment rising just 0.3% year over year.