By Diana Olick | CNBC
A leading indicator of commercial construction activity took a steep drop in August, possibly due to increased volatility in financial markets.
The American Institute of Architects reported its Architecture Billings Index (ABI) dropped from 54.7 to 49.1. Anything below 50 indicates a decrease in design services.
“Over the past several years, a period of sustained growth in billings has been followed by a temporary step backwards,” said AIA Chief Economist Kermit Baker. “The fact that project inquiries and new design contracts continue to grow at a healthy pace suggests that this should not be a cause for concern throughout the design and construction industry.”
