Dive Brief:
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Architects reported fewer nonresidential projects in January than in December, marking the first time in nine months that design professionals did not see an increase in business from one month to the next.
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The Architecture Billings Index, compiled by the American Institute of Architects, showed a score of 49.9 in January, down slightly from 52.7 in December, for billings for design services. The new projects inquiry index also was down slightly in January from the previous month.
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Both numbers came as “a bit of a surprise” to AIA Chief Economist Kermit Baker, "given the overall strength of the market over the past nine months." In a press release, Baker blamed some of the decrease in business on January’s severe weather. "We will have a better sense if there is a reason for more serious concern over the next couple of months" as the weather clears up, he said.
Dive Insight:
The Architecture Billings Index is considered a reliable barometer for future construction spending. If architects aren’t getting design jobs now, that’s a clue that construction companies won’t have as many building projects nine to 12 months down the road.