Architecture Billings Index Falls Again in July

Washington, DC, Aug. 17, 2011 -- Following a drop of almost a full point in June, the Architecture Billings Index fell again by more than a point in July, according to the American Institute of Architects.

As a leading economic indicator of future construction activity, the index reflects the approximate nine to 12 month lag time between architecture billings and construction spending.

AIA reported the July ABI score was 45.1 – the steepest decline in billings since February 2010 – after a reading of 46.3 the previous month.

“Business conditions for architecture firms have turned down sharply,” said AIA Chief Economist, Kermit Baker.

“Late last year and in the first couple of months of this year there was a sense that we were slowly pulling out of the downturn, but now the concern is that we haven’t yet reached the bottom of the cycle. Current high levels of uncertainly in the economy don’t point to an immediate turnaround.”

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