U.S. architecture billings inch up in February

A leading indicator of U.S. nonresidential construction activity improved modestly in February but remained at levels that suggest a robust recovery is months away, according to the American Institute of Architects (AIA).

 

The Architecture Billings Index rose 0.6 points to 50.6 last month, AIA said. It was the fourth consecutive reading above 50, a sign that billings by architecture firms are rising.

 

The billings index is considered a predictor of construction spending about nine to 12 months in the future, since buildings are designed long before they are erected. The latest readings suggest an anticipated recovery in U.S. nonresidential construction may not pick up speed before 2012.

 

The AIA's separate index of inquiries about new projects dipped slightly to 56.4.

 

"Overall demand for design services seems to be treading water over the last two months," said AIA Chief Economist Kermit Baker. "We still expect the road to recovery to move at a slow, but steady pace."