ACEC Market Intel – A/E Services 2025 Q1 Analysis

The Census Bureau released its 2025 1st Quarter Quarterly Services Survey (QSS). This data includes revenue for the design and engineering services performed by architecture and engineering companies.

While total seasonally adjusted A/E services’ revenue grew year over year at 7.5% to $123.3b for the first quarter of 2025, this value represents a -0.7% decline quarter over quarter. This is in line with the construction spending data that has been reported this year, which shows total spending down -0.5% year over year for April, 2025. Revised 1st quarter US GDP has been reported at -0.2%, up from the initially reported -0.3%.

Source: US Census, Quarterly Services Survey, June 2025 Release

The Bureau of Labor Statistics’ Current Employment Statistics (CES) shows firm employment slightly following this trend, as month-over-month employment declined -0.1% to 1.74 million in May 2025. This is the first month-over-month decline in industry employment since August 2024. Total industry employment still grew 2.5% year over year.

Source: US Bureau of Labor Statistics, Current Employment Statistics, June 2025