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AIA Billings Index slides in October

Following the first positive reading since January 2008, the Architecture Billings Index (ABI) published by the American Institute of Architects (AIA), Washington, D.C. dropped nearly two points in October. As a leading economic indicator of construction ...
Nov. 17, 2010

Following the first positive reading since January 2008, the Architecture Billings Index (ABI) published by the American Institute of Architects (AIA), Washington, D.C. dropped nearly two points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The AIA reported the October ABI score was 48.7, down from a reading of 50.4 the previous month. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.7, down slightly from a nearly three-year high mark of 62.3 in September.

“This is disappointing news, but not altogether that surprising,” said AIA Chief Economist Kermit Baker. “We were anticipating a slow recovery period and it's likely that there will be some fits and starts before conditions show consistent improvement. Right now, reluctance from lending institutions to provide credit for construction projects and a sluggish economy are the main impediments to a revival of the design and construction industry.” Full report