Architecture Billings Index Slips in October

Washington, DC, Nov. 17, 2010 -- The Architecture Billings Index, a leading indicator of U.S. commercial construction activity, fell in October as credit for building projects continues to be tight.

The index was down almost 2 points to 48.7 last month, according to the American Institute of Architects. A number below 50 indicates contracting demand.

A separate index of project inquiries declined to 61.7 from September's three-year high of 62.3.

"Reluctance from lending institutions to provide credit for construction projects and a sluggish economy are the main impediments to a revival of the design and construction industry," said AIA Chief Economist Kermit Baker.

The billings index had topped 50 in September, its first positive reading since January 2008.

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