More bad news. The Architecture Billings Index, which is compiled from a monthly survey of architecture firms around the U.S., is at its lowest level since the American Institute of Architects survey began in 1995.

A Leading Economic Indicator: Since the index reflects an approximate nine- to twelve-month lag time between architecture billings and construction spending, it is considered a leading economic indicator of construction activity.

Recession by the numbers: The report’s November 2009 rating was 34.7, down from 36.2 in October 2009. Scores above 50 indicate increases in billings and lower numbers show declining workloads.

This Index foreshadows not only bad times for architects, but also produces a ripple effect for construction companies, which usually see work orders materialize nine to twelve months after architects.Regionally, ratings were:

• 39.5 for the Northeast,

• 36.8 for the South,

• 33.5 for the West, and

• 31.4 for the Midwest.

• The inquiries for new projects score was 38.3, also a historic low.

In addition to traditional commercial and residential projects, what’s just as troubling is that the institutional sector — schools, hospitals and public buildings — is also beginning to react to tighter credit conditions and a weakening economy.The descending order of popular project types was:

• Mixed practice (44.5),

• Institutional (40.8),

• Multi-family Residential (30.0),

• Commercial and Industrial (26.7)

Tags: Architecture Billing Index, Leading Economic Indicator

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