Architecture Billings Index Reverses Course

Washington, DC, Oct. 20, 2010 -- Architecture billings rose in September for the first time in almost three years, according to the American Institute of Architects.

The Architecture Billings Index increased to 50.4 from 48.2 in August, the first gain since January 2008, when the index was at 51.1. Any reading above 50 indicates an increase in billings.

The index reached a low of 33.9 in January 2009.

“We’re moving in the right direction,” Kermit Baker, chief economist of the architects’ institute, told Bloomberg News. “It certainly looks like a sustainable recovery on the commercial and industrial side.”

The index ususally indicates construction spending trends about nine to 12 months ahead.

The index for commercial and industrial billings rose to 56.3 from 54.6 in August, the fifth straight gain. The billings indexes for residential projects and for institutional work including schools and hospitals, remained below 50 in September, indicating that demand is still falling for those projects.

Another index that measures client interest in new projects also rose to 62.3, the highest since July 2007.

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