U.S. nonresidential building index tumbles again

CHICAGO Dec 16 (Reuters) - A closely watched, forward- looking gauge of U.S. nonresidential construction activity fell again last month to its lowest in its 13-year history as tumbling tax revenues, tight credit markets and a sputtering economy put many plans for new schools, hospitals and other institutions on hold.

The monthly Architecture Billings Index, compiled by the American Institute of Architects, slipped 1.5 points to 34.7 in November, down from 36.2 in October.

An ABI reading below 50 indicates deteriorating demand for the services of the design firms at the front end of the commercial building process and suggests weakness in nonresidential construction that will extend well into 2009.

A separate measure of inquiries for new projects fell to 38.3 in November, also a historic low, from 39.9 in October.

"With mounting job losses, declines in retail sales, and travel cutbacks, the need for new commercial facilities has dropped considerably recently," AIA Chief Economist Kermit Baker said in a statement.

"What's just as troubling is that the institutional sector -- schools, hospitals and public buildings -- is also beginning to react to tighter credit conditions and a weakening economy."

The AIA's monthly survey, which estimates activity nine to 12 months in the future, began in 1995.

The survey asks AIA members whether their billings increased, decreased, or stayed the same in the month.

Companies that sell to the nonresidential construction market include diversified manufacturer Honeywell International Inc (HON.N); lighting maker Acuity Brands Inc (AYI.N); electrical components maker Thomas & Betts Corp (TNB.N); diversified industrial company Ingersoll Rand Co Ltd (IR.N); and Johnson Controls Inc (JCI.N), which makes heating, ventilation and cooling systems.

Caterpillar Inc (CAT.N), Terex Corp (TEX.N), Cooper Industries Ltd (CBE.N) and Illinois Tool Works Inc (ITW.N), among others, also have exposure to the sector. (Reporting by James Kelleher; Editing by Andre Grenon)