Architects' billing index tumbles

Though it showed signs of stabilization for three months, the latest Architecture Billings Index dropped five points, according to the American Institute of Architects.

The July ABI, which explores June business conditions, had a rating of 37.7, down from 42.9 the previous month and indicating a decline in demand for design services.

Any score above 50 indicates an increase as was seen in the new projects inquiry component of the index, with 53.8.

That's the fourth straight month when new project inquiries were above 50, according to an AIA release.

"It appears as though we may have not yet reached the bottom of this construction downturn," said AIA Chief Economist Kermit Baker, in the release. "Architecture firms are struggling and concerned that construction market conditions will not even improve as soon as next year. There has also been little movement in terms of stimulus funding allocated for design projects having the desired impact of leading to new work."

Regionally, the Northeast had the highest overall index with 42.8. The Midwest's average was 36.2.

The sector index breakdown was led by 43.5 in mixed practice, 42.7 in multifamily residential, 39.5 commercial/industrial and 37 institutional.

Data in the ABI comes from a monthly Work on the Boards survey sent to AIA member-owned firms and produced by AIA's economics and market research group.

Regional and sector data is formulated with a three-month moving average, the release said.[[In-content Ad]]