by jbs022409 j3 — March 2, 2009—On the heels of a modest uptick in December 2008, the Architecture Billings Index (ABI) dropped to a historic low level in January 2009, according to the American Institute of Architects (AIA). As a leading economic indicator of construction activity, the ABI reflects the approximate nine-to-twelve-month lag time between architecture billings and construction spending.
AIA reports the January ABI rating was 33.3, down from the 34.1 mark in December (any score above 50 indicates an increase in billings, notes AIA). The inquiries for new projects score was 43.5.
“Now that the stimulus bill has passed and includes funding for construction projects, as well as for municipalities to raise bonds, business conditions could improve,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “That said, until we can get a clearer sense of credit lines being made available by banks, it will be hard to gauge when a lot of projects that have been put on hold can get back online.”
Key January ABI highlights include:
- Regional averages: West (38.3), Midwest (34.6), South (34.4), Northeast (29.8);
- Sector index breakdown: mixed practice (39.6), institutional (37.1), commercial/industrial (33.8), multi-family residential (29.5); and
- Project inquiries index: 43.5.
