Nov. 30, 2009: Construction Index Is the Most Positive in Over a Year
November 30, 2009
WASHINGTON - Amidst a continued high level of inquiries for possible new projects, the American Institute of Architects (AIA) has reported that its Architecture Billings Index (ABI) reached its highest mark since August 2008. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending. The AIA reported the October ABI rating was 46.1, up sharply from 43.1 in September. This score, however, indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 58.5, following the 59.1 mark in September.
“This news could prove to be an early signal towards a recovery for the design and construction industry,” said AIA Chief Economist Kermit Baker, Ph.D., Hon. AIA. “On the other hand, because we continue to get reports of architecture firms struggling in a competitive marketplace with a continued decline in commercial property values, it is far too early to think we are out of the woods.”
Publication date: 11/30/2009