AIA's Architecture Billings Index for April Hints That Worst of the Decline May be Over

After steep declines during the fourth quarter of 2008 and the first quarter of this year, architecture firms are reporting that deteriorating business conditions are beginning to moderate. The AIA Architecture Billings Index (ABI) was 42.8 points in April, just a tick below the March reading of 43.7 points. According to Kermit Baker, chief economist, American Institute of Architects (AIA), Washington, D.C., although the index is still pointing to falling business levels, the steepest part of the downturn appears already to have occurred. In an article accompanying the new ABI data that was posted at www.aia.org on May 20, Baker said inquiries for new projects remained very healthy, nudging up slightly to 56.8 points nationally in April, just above the 56.6-point reading in March. Federal stimulus program projects are one source of new project inquiries. Project activity in all major construction sectors is still slowing, but at a moderating pace. Firms in the Northeast and South appear to be closer to recovering than firms in other regions of the country.

Said Baker, “The ABI has remained below 50 — and therefore indicating declining business conditions — every month since January 2008. However, inquiries have not been as high as the March and April readings over this five-quarter period.”