US construction recovery stalls, according to AIA figures

29 June, 2009

The May ABI rating was 42.9, up from 42.8 in April, indicating that the decline in demand for architectural services had stabilised. However, to indicate an increase in demand would require a figure of 50 or above.

The monthly index is seen as an economic indicator of construction activity and the health of the wider economy, with a nine to twelve month lag between billings and construction spending.

Figures from the previous three months had consistently risen and were interpreted as a hopeful sign of recovery after 12 consecutive months of falls that resulted in the lowest numbers recorded since the index was established in 1995.

Billings from institutional projects were the lowest overall, with a rating of 38.0, while the best average score was reported for the North East region at 48.3.

But inquiries for new projects continued to perform well, at 55.2, indicating a strong increase.

Kermit Baker, AIA chief economist, said: “The design and construction marketplace is extremely competitive right now.

“Prospective clients are casting a wider net causing numerous firms to bid for the same project, which is why the high level of inquiries is not necessarily translating into additional billings for project work at many firms.”