Construction Recovery On Hold?
A key measure of business activity in the architectural field has fallen back into negative territory after showing signs of life earlier this fall.
The Architectural Billings Index fell two points in October, pushing it below 50 on a scale of 100. Anything below 50 signals retrenchment rather than expansion, according to the American Institute of Architects.
Why care? Architects are the first hired and the first fired, so when they see a pickup in business, more work is headed downstream to construction companies and other contractors.
Lenders continue to be cautious – while a sluggish economy does not help either, suggests Kermit Banker, the AIA’s chief economist.
Still, this is likely to be a temporary dip on the road to recovery, Baker contends.
“This is disappointing news, but not altogether that surprising,” Baker said. “We were anticipating a slow recovery period and it is likely that there will be some fits and starts before conditions show consistent improvement.”
And despite October’s gloomy numbers, there are signs that construction activity may be finally picking up in Greater Boston.
Possibly lured by low construction prices, a number of Hub universities and colleges are rolling out major projects, including Northeastern University and Berklee College of Music.