Architecture Billings Index Points to Continued Struggles for Construction Industry

The American Institute of Architects (AIA) has reported that the August Architecture Billings Index (ABI) dropped to its lowest level since June. The ABI rating was 41.7, down slightly from 43.1 in July. The new projects inquiry score was 55.2.

"While there have been occasional signs of optimism over the last few months, the overwhelming majority of architects are reporting that banks are extremely reluctant to provide financing for projects, and that new equity requirements and conservative appraisals are making it even more difficult for developers to get loans," says AIA chief economist Kermit Baker, PhD, Hon. AIA. "Until the anxiety within the financial community eases, these conditions are likely to continue."