AIA Billings Index Falls to Record Low

New York, NY, Oct. 19, 2008--The Architecture Buildings Index of U.S. nonresidential construction activity fell to the lowest level in its 13-year history last month as spending slumped on healthcare and educational facilities, an architects' trade group said on Wednesday.

The index, a forward-looking measure of construction activity, fell more than 5 points to 36.2 in October, the American Institute of Architects said. A reading below 50 indicates a decline in billings.

A separate measure of inquiries for new projects fell to 39.9, from 51 in September, also reaching a record low.

"Governments and nonprofit agencies are having difficulties getting bonds approved to finance large-scale education and healthcare facilities," AIA chief economist Kermit Baker said. "Until recently, the institutional sector had been somewhat insulated."

The AIA's survey began in 1995. It is considered a leading indicator of construction activity about nine to 12 months in the future.

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