-By Stacy Straczynski

Glimmers of hope once again eluded the market, according to the latest Architecture Billings Index (ABI) released yesterday (Feb. 23) by the American Institute of Architects (AIA). The monthly data, which serves as a leading indicator of construction economic activity, reports that the overall ABI significantly declined by three points in January to 42.5, from an adjusted 45.4 in December.

The total number of project inquiries also dropped in January by more than seven points to 52.5, reversing the promising 58.5 total experienced in December.

The report adds to the continuing downward trend in the design industry that has taken hold since the economic meltdown in August 2008. (October 2009, however, was an exception, during which time the billings rose to 46.1.) Any score below 50 represents a decreased demand for design services.

AIA chief economist Kermit Baker, PhD, Hon. AIA, says in a statement that the continued decline among the industry correlates to the strict equity requirements lending institutions are placing on all new development projects, regardless of a company’s credit rating, as well as other lingering economic issues—such as a hesitant stock market, decreased tax revenues, and lessened property values.

“Until these factors are resolved,” Baker says in a statement, “the design and construction industry -- which accounts for roughly 10 percent of GDP and is facing unemployment figures in excess of 20 percent -- will continue to face deteriorating market conditions.”

The monthly AIA Billings Index, a leading indicator of construction economic activity, displays a nine- to 12-month lag time between architectural billings and actual construction.