The American Institute of Architects, Washington, D.C., reports that the Architecture Billings Index rose slightly in April after falling to its lowest level ever in March. The index, considered a leading economic indicator of construction activity, shows an approximate nine- to 12-month lag between architecture billings and construction spending. The institute reported the April rating was 45.5, up from the historic low of 39.7 in March. Any score above 50 indicates an increase in billings.
“After dropping rapidly the past two months, this up-tick shows that the slowdown is beginning to moderate,” said the institute’s chief economist, Kermit Baker, PhD, Hon. AIA. “Even though the downturn in design billings has come on very quickly, most areas of the country aren’t showing signs of an oversupply of nonresidential facilities. That provides hope that this weak patch may be relatively short-lived.”
April index highlights:
• Regional averages: South (46.6), Northeast (41.6), Midwest (41.6), West (37.7)
• Sector index breakdown: institutional (50.4), mixed practice (45.2), commercial/industrial (39.3), multifamily residential (33.5)
• Project inquiries index: 53.9
