Architecture Billings Index Drops for October
The Architecture Billings Index (ABI) dropped nearly two points in October.
The ABI showed a score of 48.7,after a 50.4 for September, according to the American Institute of Architects (AIA). ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending.
The AIA report says, "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, PhD, Hon. AIA. “We were anticipating a slow recovery period and it is 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.”
Below is a graph of the Inquiries and Billings index for the past three years.
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