The American Institute of Architects (AIA) reported Wednesday that after five months of positive readings, the Architecture Billings Index (ABI) fell into negative terrain in April. The April ABI score was 48.4, following a mark of 50.4 in March. This score reflects a decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 54.4, down from mark of 56.6 the previous month. 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.
Kermit Baker, the AIA's Chief Economist, said "Considering the continued volatility in the overall economy, this decline in demand for design services isn't terribly surprising. Also, favorable conditions during the winter months may have accelerated design billings, producing a pause in projects that have moved ahead faster than expected."