ABI hits historic low

The Architecture Billings Index rating for October was 36.2, down from 41.4 in September (any score above 50 indicates an increase in billings). This is the lowest ABI level since the American Institute of Architects, Washington, D.C., began the survey in 1995. The inquiries for new projects score was 39.9, also a historic low point. As a leading economic indicator of construction activity, the ABI shows an approximate nine to 12 month lag time between architecture billings and construction spending. “Until recently, the institutional sector had been somewhat insulated from the deteriorating conditions affecting the commercial and residential markets,” said AIA Chief Economist Kermit Baker, Ph.D., Hon. AIA. “Now we are seeing that governments and nonprofit agencies are having difficulties getting bonds approved to finance large scale education and health care facilities, furthering the weak conditions across the construction industry.”
• Regional averages included: Northeast 44.3, South 40.0, Midwest 37.4, West 34.9
• The sector index breakdown: mixed practice 45.1, institutional 42.1, commercial/industrial 33.6 and multifamily residential 34.2