Architecture Billings Index Points to Continued
Struggles for Construction Industry
September 23, 2009
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."
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