DEMAND for United States architectural services, a leading construction indicator, dropped for the eighth month as developers delayed or canceled projects amid a lack of financing, the American Institute of Architects reported on Tuesday.
The Architecture Billings Index registered 41.4 in September, down from 47.6 the month before, the institute said. Any score below 50 indicates a decrease in billings from the previous month. The index last had a score above 50 in January, Bloomberg News reported.
The drop in architecture billings indicates construction spending will fall through much of next year.
The index predicts the development of warehouses, apartments, offices and other buildings, with about nine to 12 months between the time architects bill their clients and the time developers begin spending on construction.