Global economic uncertainty brings ‘dip in confidence’ but architects remain optimistic

Latest News Fri, May 23, 2025 5:58 AM

RIBA’s latest report on architecture business and employment trends, RIBA Future Trends April 2025, comes amid global trade instability prompted by US tariffs but shows that the profession is still largely positive.

With the profession remaining positive overall, all regions, barring one, are positive about future work, with London being the most positive of all.

Practices also expect increasing workloads in the Commercial and Residential sectors.

However, smaller practices — who still describe a challenging market — are less optimistic about future workloads and staff than medium and large-sized firms.

Adrian Malleson, RIBA Head of Economic Research and Analysis, said: “With April's data catching the first impressions of the global trade instability brought on by the Trump Tariffs, the profession has seen a dip in confidence but remains resilient in its positive outlook.

“The outlook for the Commercial and Residential markets is holding up. Together these sectors make up the majority of RIBA Chartered Practice work, by value. However, anticipated investment in public sector work has yet to show in architects' expectations.

“All but one region is positive about future work. London, which generates the largest proportion of UK practice fee revenue, is the most positive.

“Small practices continue to describe a more challenging market, with a negative outlook for both workloads and staff this month, in contrast to the optimism of medium and large-sized practices.

“The Workload Index for early 2025 compares favourably with the same period last year. The average Workload Index for the first four months of 2025 is +3, up from -2 for the same period in 2024.

“That said, the effects of global trade uncertainty are yet to fully play out, with some suggesting it is dampening architects' outlook.

“Overall, commentary from practices gives a mixed picture. Some report that the market continues to be highly challenging and intensely competitive, with few enquiries, and a poor pipeline of work. Project delays, regulatory changes, and late payment of fees continue to be reported.

“In contrast, other practices describe an increasingly buoyant market, an uptick in private residential work, and a rise in new enquiries and their subsequent conversion.

Some practices report increasingly and successfully turning to overseas markets to procure work.”

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