by Rebecca Walker — May 22, 2009—The Architecture Billings Index fell 0.9 of a point to 42.8 last month after an eight-point jump in March, according to the American Institute of Architects (AIA).
The index has not crossed above 50—a level that indicates improving demand—since January 2008, noted AIA.
All four U.S. geographic regions tracked by the group, and all four construction subsectors, remained below 50, but all improved sequentially from March. A measure of inquiries for projects rose slightly to 56.8, reflecting builders’ interest in stimulus-funded projects, says the Institute.
The data suggested demand might be returning over several months, rather than pointing to a rapid recovery, the AIA said.
“Too many architects are continuing to report difficult conditions to feel confident that the economic landscape for the construction industry will improve very quickly,” AIA Chief Economist Kermit Baker said.
The AIA’s Billings Index, which began in 1995, is considered a measure of construction activity nine to 12 months in the future. Nonresidential construction includes commercial and industrial facilities such as hotels and office buildings, as well as schools, hospitals and other institutions. For more information, see the AIA Web site.
