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January 23, 2009—Following consecutive months with record low scores, the Architecture Billings Index (ABI) moved up only very modestly in December 2008, signifying that the design industry remains mired in a steep downturn. As a leading economic indicator of construction activity, the ABI reflects the approximate nine-to-twelve-month lag time between architecture billings and construction spending.

The American Institute of Architects (AIA) reported the December ABI rating was 36.4, up from the 34.7 mark in November (any score above 50 indicates an increase in billings). The inquiries for new projects score was 37.7. The commercial sector continues to be the hardest hit by the economic downturn, notes AIA.

"The inability to get financing for construction projects is a key reason that business conditions continue to be so poor at design firms," said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. "It will be important to see what the proposed economic stimulus package includes that is geared towards the construction industry, and how quickly developers who have had to put projects on hold can get them moving again."

Key December ABI highlights:

• Regional averages: West (35.3), South (35.3), Midwest (35.5), Northeast (34.4)
• Sector index breakdown: mixed practice (45.1), institutional (39.3), multi-family residential (30.0), commercial/industrial (28.1)
• Project inquiries index: 37.7