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ABC Unveils Construction Backlog Indicator; Backlog for May Rises to 6.3 Months
July 29, 2009

The Associated Builders and Contractors Inc. (ABC) has released its inaugural Construction Backlog Indicator (CBI), a forward-looking measurement reflecting the amount of work to be performed by contractors in the months ahead.

According to the report, the overall CBI in the nation's nonresidential construction industry, which includes industrial, infrastructure and commercial/institutional segments, rebounded in May to 6.3 months, up from 6.2 months in April, but is still down by roughly 0.8 months since November 2008, when ABC began collecting data. During the past seven months, nonresidential backlog is down by an average of 24 days.

Backlog in May rose in each of the four regions that ABC monitors, with the exception of the South. Despite this drop, at 7.5 months, the South now reports the longest average backlog with the Northeast coming in with the shortest average backlog. CLICK HERE to view a map of the regions.

Firms in the $10-million to $30-million earning segment saw an increase in backlog on a monthly basis, but a decrease compared to November 2008, while the $30-million to $50-million segment saw no change in May compared to April, but fell compared to November 2008. Firms with annual revenues of more than $100 million continue to report the longest backlog at 9.9 months, down from 10.3 months in November 2008.

CLICK HERE to view the full report.

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