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Architects report drop in new business

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After showing signs of stabilization over the last three months, the nation’s architects reported a plunge in new business in June. Architectural contracts are a leading indicator of construction activity, with a lag time of about nine months to a year between the awarding of architectural contracts and construction spending.
The American Institute of Architects, the leading trade group for the profession, said today that its index of ‘work on the boards’ reported by architects was far lower than the previous month.
‘It appears as though we may have not yet reached the bottom of this construction downturn,” said Kermit Baker, the institute’s chief economist. “Architecture firms are struggling and concerned that construction market conditions will not even improve as soon as next year. There has also been little movement in terms of stimulus funding allocated for design projects having the desired impact of leading to new work.”
--Roger Vincent

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