AIA Billings Show Commercial Sector's Slumping

Washington, DC, March 19, 2008--Commercial construction felt the effects of the deteriorating housing market and slumping economy in February, according to the American Institute of Architects.

The group's Architecture Billings Index fell to 41.8 for the month, its lowest level since October 2001, and down from 50.7 in January. It was the second consecutive monthly decline.

Scores below 50 show a decrease in billing activity.

"This is a clear indication that there could be tougher times ahead for design firms and a noticeable slowdown in commercial construction projects coming online in the foreseeable future," said AIA Chief Economist Kermit Baker in a press release.

Construction spending typically lags the index by nine months to a year, making it a significant indicator of construction activity.

The weakest reading was in the Midwest (42.6). Demand was strongest in the Northeast (51.5).

"The one bright spot," Baker said, "continues to be the institution sector with continued positive conditions for construction projects such as schools, hospitals and government buildings."

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