by Rebecca Walker — October 24, 2008—A measure of future US nonresidential construction activity plunged last month as more architects reported cancellations of projects amid the ongoing credit crisis, according to the American Institute of Architects.
The Architecture Billings Index fell more than 6 points to 41.4 in September. A reading below 50 indicates a decline in billings, a leading indicator of construction activity about nine to 12 months in the future.
A separate measure of inquiries for new projects fell to 51 from 52.4 in August.
“Many architects are reporting that clients are delaying or canceling projects as a result of problems with project financing,” AIA chief economist Kermit Baker said. “Conditions are likely to get worse before they get better.”
Demand also dipped for projects such as schools, hospitals and government buildings, with the institutional category of the index falling below 50 for the first time this year, the AIA said.
All the other sectors tracked by the group were also below 50, as were all four of the geographic regions. For more information, see the AIA Web site.
