For Architects, a Downturn Is in the Designs

Wall Street Journal (03/19/08) P. C12; Hudson, Kris
According to the American Institute of Architects (AIA), its Architecture Billings Index (ABI) for February dipped to 41.8--its lowest monthly reading since the aftermath of Sept. 11, 2001. Any reading below 50 signals that billings for the industry declined. Jan Hatzius, chief U.S. economist at Goldman Sachs Group, reports that the ABI's decline indicates that the nation's economic slump has now had negative ramifications on commercial construction as well residential and is further confirmation that the broader economy is in recession. AIA researchers, meanwhile, say the index's drop means commercial construction will remain under pressure through at least this year and 2009 as the credit crunch will likely continue.