Architecture Billings Index Falls

New York, NY, May 18, 2011--The American Institute of Architects announced that the architecture billings index fell almost three points in April to 47.6. This level indicates declining demand for architecture services.

This index is considered a predictor of nonresidential construction trends nine to 12 months in the future.

However, experts believe that extenuating circumstances--such as the threat of government shutdown and extreme weather--may be the cause of this drop, rather than an actual reversal in demand. However, the difficulty of obtaining funding does remain an obstacle to growth.

Another index of inquiries for new projects fell 3.7 points to 55.0. This gauge, however, remains above the 50 mark that indicates expansion and is generally higher than the billings index because construction clients contact multiple architects about future projects.

"The majority of firms are reporting at least one stalled project in-house because of the continued difficulty in obtaining financing," said AIA chief economist Kermit Baker. "That issue continues to be the main roadblock to recovery, and is unlikely to be resolved in the immediate future."

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