Architecture Billings Index Improves in March

Washington, DC, April 21, 2010--The Architecture Billings Index, a leading indicator of U.S. nonresidential construction spending, recovered slightly in March, and an index of future projects rose, according to the American Institute of Architects.

The index was up 1.3 points to 46.1 last month. A measure of inquiries for new projects jumped more than 6 points to 58.5, after dropping in the two prior months.

Readings above 50 indicate expansion; those below 50 point to declining demand.

"We could be moving closer to a recovery phase," said AIA Chief Economist Kermit Baker.

"Firms are still reporting an unusual amount of variation in the level of demand for design services, from improving to poor to virtually nonexistent," he said. "Overall business conditions may begin to change."

Of four U.S. geographic regions, only the Midwest was above 50 in March, while all four construction sectors remained below that mark.

The AIA's billings index is considered a measure of construction spending nine to 12 months in the future.

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