ABC Construction Backlog Indicator Up 8.9%;
Nonresidential Construction Industry May Have Hit Bottom
September 22, 2009
Associated Builders and Contractors (ABC) reported that the nation's
Construction Backlog Indicator (CBI) for July rose 8.9 percent to
6.1 months from 5.6 months in June. The CBI is a gauge on the amount
of construction work to be completed, measured in time, currently
"While the magnitude of monthly increase was significant and
impressive, June was the lowest point for the CBI since ABC began
collecting national data in November 2008. At that time, the CBI
stood at 7.1 months, or 14 percent above its current level of 6.1
months," says ABC chief economist Anirban Basu. "The July
data strongly reflect the effects of the stimulus package signed
into law in February on the commercial, institutional, industrial
and infrastructure construction segments," says Basu. "In
the months ahead, we expect higher levels of actual construction
spending, a welcome sign for the industry and the economy at large,
and an indication that the downturn may be over for the nonresidential
construction industry, though not all segments."
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