AIA Billings Index May Be Hitting Bottom

Washington, DC, Aug. 20, 2008--The AIA Billings Index, an indicator of future U.S. nonresidential construction activity, strengthened last month, but still marked the sixth straight month of contraction, according to the American Institute of Architects.

The index rose seven-tenths of a point to 46.8 in July. 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 jumped almost three points to 54.6, the second straight month indicating expansion.

"It looks like there are some emerging signs there may be work out there," AIA Chief Economist Kermit Baker said. Inquiries slumped before the current downturn, so they may suggest a higher ABI in coming months, he added.

Signs of strength in the Midwest could also indicate a coming recovery, since the economy there has been weak the longest.

"That would point to the other regions following the Midwest back up over the next six to 12 months," Baker said.

The Midwest, with a reading of 50, recorded the strongest billings, while the western United States remained the weakest region.

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