The American Institute of Architects (AIA) reported in that The Architectural Billing Index (ABI) fell in January to 49.6 from 51.3 in December. Any score above 50 indicates an increase in billing services. The ABI is an indicator of future construction spending – with a lead time of about nine to twelve months – as design services lead to new construction projects.
The reason for the decrease? AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. states ” January was a rocky month throughout the economy, with falling oil prices, international economic concerns and with steep declines in the stock market valuations in the U.S. and elsewhere. Some of the fallout of this uncertainly may have affected progress on design projects.”
At the same time Dr. Baker also suggests “the fundamentals are mostly sound in the nonresidential design and construction market”.