WASHINGTON, D.C. — After a sharp dip in September, the Architecture Billings Index climbed nearly three points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending. The American Institute of Architects reported the October ABI score was 49.4, following a score of 46.9 in September. This score reflects an overall decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.3, up from a reading of 54.3 the previous month. “An increase … Read more

Persistent Financing Crunch Continues to Plague Design, Construction Sector WASHINGTON, D.C. — The American Institute of Architects released a comprehensive report that concludes that the major obstacle holding back job creation in the United States is the persistent lack of construction financing, despite record low interest rates. “This report should lay to rest any doubt about what is a key source for holding back job creation in the United States," said Kermit Baker, chief economist of the AIA. “It is the lack of financing especially to the design and construction sector, which accounts for $1 in $9 of U.S. Gross … Read more

Construction spending increased by 0.2 percent between August and September but was down 1.3 percent compared to September 2010, the Associated General Contractors of America reported in an analysis of new Census Bureau data. Association officials noted that growing declines in public sector activity continue to offset modest increases in private sector demand for construction. “In less than a year's time, the public sector has gone from propping up the construction industry to holding,” said the association's chief economist, Ken Simonson. “Even as local and state budgets continue to contract, the federal government is winding the stimulus and base realignment … Read more