Leading indicator of US construction activity fell in April, hurt by tight financing for projects, suggesting a hoped for construction recovery may be delayed.

According to the American Institute of Architects, the architecture billings index fell almost 3 points last month to 47.6, a level that indicates declining demand for architecture services.

The AIA's index is considered a predictor of nonresidential construction trends nine to 12 months in the future.

A separate index of inquiries for new projects fell 3.7 points to 55.0, but remains above the 50 mark that indicates expansion. This measure is typically higher than the billings index because construction clients contact multiple architects about future projects.

The declines may not indicate a wide reversal in demand since April included unusual factors, like the threat of a U.S. government shutdown and destructive storms, the trade group said. However, funding for construction projects remains an obstacle as large lenders are reluctant to fund projects.

(Sourced from Reuters)