Architectural Billings Plunge in January

Washington, DC, February 20, 2008--Nonresidential construction could fall later this year according to a leading indicator that fell sharply in January.

The American Institute of Architects' Architecture Billings Index, which had risen the previous three months, fell to 50.7 in January, down from a revised 55 in December. It was the lowest reading since July 2006.

The weakest reading was in the Midwest (49.3), while the Northeast (63) had the strongest reading.

"Given the concerns about the condition of the overall economy, coupled with a suffering housing market, it is not surprising to see a falloff in demand," said AIA Chief Economist Kermit Baker.

Nonresidential building has remained relatively strong over the past two years, even as the housing market has tumbled.

/rchitects billing precede construction by about nine-to-12 months.

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