AIA Billings Index Predicting Commercial Slowdown

Washington, DC, June 17, 2008--The American Institute of Architects said nonresidential construction billings continued to decline in May for the fourth straight month, showing continued weakness in nonresidential building.

The AIA's Architecture Billings Index, which tracks new billings for nonresidential construction at U.S. architecture firms, fell 2.1 points in May to 43.4.

New billings at architecture firms fell faster in May than in April. However, the reading is up an all-time low of 39.7 in March.

A reading below 50 means new billings fell.

"With the exception of the institutional sector -- projects like government buildings, schools and hospitals -- we've seen a dramatic contraction in design activity in recent months," AIA Chief Economist Kermit Baker said in a statement.

AIA's measure of inquiries for new projects also declined, giving up 7.4 points to 46.5.

Only the reading on institutional construction came in above 50, rising 3.1 points to 53.9.

"This weakness in design activity can be expected to produce a contraction in these construction sectors later this year and into 2009," Baker said.

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