Architects’ billings show drop in assignments

The Architecture Billings Index fell from to 45.8 in May from 48.4 in April, after three straight months of improving, according to a national report released this week by the American Institute of Architecture. ABI tracks the approximate nine- to 12-month lag time between architecture billings and construction spending. Since any score above 50 indicates an increase in billings, the nearly 3-point decrease in the May ABI score reflects a continued decline in demand for design services. “This dip is somewhat of a surprise since it appeared that conditions were pointing towards a recovery,” said Kermit Baker, chief economist for the institute. “The overriding issue affecting the entire real estate sector is unusual caution on the part of lending institutions to provide credit for construction projects that apparently would be successful in this environment.” TRD