WASHINGTON, DC-After three straight months of improvement, theArchitecture Billings Index fell nearly three points for the monthof May. The news is a disappointment to the construction industry,as the American Institute of Architects’ ABI is a leadingindicator, reflecting the approximate nine- to 12-month lag timebetween architecture billings and construction spending.
AIR reported the May ABI rating was 45.8, down substantiallyfrom a reading of 48.4 the previous month. The newprojects inquiry index was 55.5.
"This dip is somewhat of a surprise since it appeared thatconditions were pointing towards a recovery," said AIA ChiefEconomist Kermit Baker, in a statement. "The overriding issueaffecting the entire real estate sector is unusual caution on thepart of lending institutions to provide credit for constructionprojects that apparently would be successful in this economicenvironment." Baker was unable to return a call to GlobeSt.com intime for publication.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
