Dive Brief:

• The Architectural Billings Index fell to 49.3 in November, down from 53.1 in October, the American Institute of Architects reported Wednesday. The November score marks a decline in design services, as any score above 50 signals an increase in billings. 
• Disappointing results in the Northeast, with a score of 46.2 over a three-month moving average, and the Midwest, with a score of 47.8, dragged down positive marks from the West, at 54.5, and the South, at 55.4.
• Within segments of the index, commercial/industrial came out on top, at 55.1; followed by mixed-practice, at 54.9; multifamily residential, at 53.8; and institutional, at 51.4. 

Dive Insight:

The ABI is an indicator of future construction spending — with a lead time of about nine to 12 months — as design services lead to new commercial projects.

In a release, AIA Chief Economist Kermit Baker said architecture firms are still reporting a healthy flow of new business, so "this volatility in billings doesn't seem to reflect any underlying weakness in the construction sector."

However, he said the steep dip in November "could reflect the uncertainty of moving ahead with projects given the continued tightness in construction financing and the growing labor shortage problem gripping the entire design and construction industries."

The ABI has been mostly split this year in terms of increases and decreases, as it has risen in six out of 11 months during 2015. 

Despite recent employment gains in the construction sector, employers continue to cite a severe lack of qualified labor as a major obstacle keeping the industry from stronger growth.