ABC Releases Construction Backlog Indicator

From the Associated Buildings and Contractors website:

ABC June 22 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. A high backlog value a large amount of work is due to begin in the near term, leading to a positive economic impact, and a low backlog value indicates fewer projects are under contract, leading to a more uncertain economic impact. 'Commercial and industrial construction is a major part of the American economy. We have developed this new, innovative measurement not only to track the level of commercial and industrial construction activity, but also to look into the future for signs of recovery,' said ABC Chief Economist Anirban Basu. 'Significantly, we are able to track backlog by region as well as by industry sector and company revenue to paint a complete picture of this critical economic segment on an ongoing basis.' 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. To read the view the full report, including charts and graphs, and to learn about the methodology, visit www.abc.org/backlog. To sign up to receive the Construction Backlog Indicator every two months, visit www.abc.org/subscriptions.