AIA Billings Index Up, but Still Not Healthy

Washington, DC, Sept. 17, 2008--The Architecture Billings Index rose 0.8 to 47.6 in August, according to the American Institute of Architects. A reading below 50 indicates a decline in billings, a leading indicator of construction activity about nine to 12 months in the future.

Another index of inquiries for new projects fell to 52.4 from 54.6 in July.

"The news for industries affected by the construction industry is that looking back 12 to 18 months, the numbers were extremely healthy," AIA Chief Economist Kermit Baker said. "That means many of those projects are currently in or entering the construction phase, so there should still be demand for labor and building materials, and later on interiors, computer equipment and the like."

There was continued demand for projects such as schools, hospitals and government buildings, with the institutional category of the index remaining positive going all the way back to 2004.

The Midwest, with a reading of 49.4, recorded the strongest billings, but was down from 50 in July. The South, at 45, was the weakest region.

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