Following the first positive reading since January 2008, the ABI dropped nearly two points in October. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.
A survey of more than 1,400 North American executives and managers responsible for making investments and managing energy in commercial buildings found that planned investment in energy efficiency is expected to rebound in 2010.
Dunlap stated, “[This year] has been an exceptionally difficult [one] for this industry, but I see brighter days ahead. There are enough indicators that tell us that the current industry recession has probably bottomed out. The modest increases in shipments and orders during the second quarter suggest this.”
There has been a recent moderation in the downturn in design services billings, but the Architecture Billings Index (ABI) reveals that an economic recovery has stalled.
Battered by the U.S. economic recession, the commercial real estate market is struggling to maintain values across all property types and geographic areas, kicking a growing number of investors into survival mode as they painfully watch the value of their existing portfolios decline
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