Contacts
 




Keyword Site Search






Construction Backlog Posts Monthly Increase

Good News for Nonresidential Construction Industry

Construction Backlog Posts Monthly Increase

In spite of the growth of the overall nonresidential backlog in May, the infrastructure sector declined sharply for the month but ABC chief economist Anirban Basu feels that "is likely a statistical aberration," caused by "changes in the idiosyncratic backlog" by the several very large firms that dominate the sector.


The latest Associated Builders and Contractors' Construction Backlog Indicator grew to 8.9 months, which is a gain of 0.2 months or 2.2% over the previous month when the CBI registered 8.7 months. This all comes after a big drop earlier in the year.

ABC chief economist Anirban Basu notes that this expansion in nonresidential construction spending indicates that it will not only serve as a significant driver of business revenue growth and employment in the industry, but of overall economic strength in in the U.S. as well.

"Despite concerns about the rising costs of material prices and labor impacting construction contracts, demand for nonresidential construction services remains elevated for now," he states.
According to Basu, nonresidential construction spending patterns generally trail the broader economy by 12 to 18 months.
"While nonresidential construction doesn't keep pace with other industry segments during the early stages of an economic recovery, it can continue to see robust growth during the late stages of an economic expansion," he reports. "With the economy continuing to demonstrate momentum along the dimensions of financial market performance, job creation, income growth and consumer spending, contractors can expect several additional quarters of spending growth."



Comment Form is loading comments...

Related Stories


Construction Spending Posts Monthly Gain | Landscape Architect

Construction Spending Posts Monthly Gain

31126  Construction Spending Posts Monthly Gain
Home Builder Confidence Hits 20-Month High | Landscape Architect

Home Builder Confidence Hits 20-Month High

31124  Home Builder Confidence Hits 20-Month High
Report Predicts 2020 Construction Starts Will Drop | Landscape Architect

Report Predicts 2020 Construction Starts Will Drop

31121  Report Predicts 2020 Construction Starts Will Drop
Total Construction Starts Down for Month | Landscape Architect

Total Construction Starts Down for Month

31117  Total Construction Starts Down for Month
Small Business Optimism Fades | Landscape Architect

Small Business Optimism Fades

31104  Small Business Optimism Fades
Nonresidential Planning Index Shows Monthly Gain | Landscape Architect

Nonresidential Planning Index Shows Monthly Gain

31096  Nonresidential Planning Index Shows Monthly Gain
Mostly Positive Numbers for Residential Sales, Construction | Landscape Architect

Mostly Positive Numbers for Residential Sales, Construction

31092  Mostly Positive Numbers for Residential Sales, Construction
Architecture Billings Falter | Landscape Architect

Architecture Billings Falter

31081  Architecture Billings Falter
Construction Spending Is Down YTD | Landscape Architect

Construction Spending Is Down YTD

31077  Construction Spending Is Down YTD
Housing Starts See Monthly Surge | Landscape Architect

Housing Starts See Monthly Surge

31073  Housing Starts See Monthly Surge


December 8, 2019, 9:51 am PDT

Website problems, report a bug.
Copyright © 2019 Landscape Communications Inc.