AIA: Billings Trend Downward

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Mimicking the state certain sectors in the construction industry, the American Institute of Architects has noted a downward trend in its Architecture Billings Index.

According to the report, billings at U.S. architecture firms slowed again in May, marking the fourth straight monthly decline. Inquiries for new project work also declined. Work at institutional firms remained at healthy levels, while residential and commercial/industrial firms reported further weakness.

These projections are supported by recent news by the Commerce Department that office projects led to an increase in public construction spending in May with a 37.4 percent increase, representing $4.02 billion spent. Public safety and transportation also recorded strong gains in May. On the flip side, private residential construction spending was down 27.4 percent in May 2008.

According to the AIA report, despite overall weakness in design activity, institutional firms continued to report reasonably healthy business conditions. The billings index for institutional firms was 53.9 in May, and has not dipped below 50 during this current period of weakness. Readings at both residential and commercial/industrial firms, on the other hand, were below 40 in May, pointing to continued deceleration in business conditions at these firms.

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