December 24, 2007—Commercial construction is expected to perform well in 2008 despite predictions of a US recession, according to a study by the American Institute of Architects (AIA).
The AIA Billings Index rose to 55.3 in November, up from 53.2 in October, while inquiries for new projects was 56.6.
The index shows an approximate nine- to 12-month lag between architecture billings and construction spending.
“For the time being, the anxiety in the credit markets that threatened many nonresidential projects during the fall has abated,” said AIA Chief Economist Kermit Baker. “With consecutive months of two- point bumps, all signs point to continued healthy demand for construction projects well into 2008.”
Within industry sectors, commercial/industrial was the highest rating at 58.7; followed by mixed practice at 57; institutional at 55.8; and multifamily residential at 44.2.
For more information, see the AIA Web site.
