flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator increases modestly in May

Market Data

ABC’s Construction Backlog Indicator increases modestly in May

The Construction Backlog Indicator expanded to 8.9 months in May 2019.


By ABC | July 16, 2019

Associated Builders and Contractors reported today that its Construction Backlog Indicator expanded to 8.9 months in May 2019, up 0.2 months or 2.2% since April 2019, when CBI stood at 8.7 months. 

Nonresidential construction spending continues to be a significant source of economic strength in America, and the latest Construction Backlog Indicator strongly suggests that nonresidential construction spending will continue to be a major driver of business revenue growth and employment,” said ABC Chief Economist Anirban Basu. “Despite concerns about the rising costs of material prices and labor impacting construction contracts, demand for nonresidential construction services remains elevated for now.

“In general, nonresidential construction spending patterns lag the broader economy by 12-18 months,” said Basu. “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. 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.

“That said, infrastructure backlog declined sharply in May, which is likely a statistical aberration,” said Basu. “The infrastructure category is dominated by several very large firms, and changes in their idiosyncratic backlog can have major impacts on the overall reading. There is little reason to expect a meaningful dip in infrastructure spending in the near term given the improving financial health of many states and localities across the nation. Moreover, backlog in the commercial/institutional and heavy industrial segments rose in May. Several construction firms specializing in heavy industrial construction in the Midwest report substantial increases in construction backlog.”

 

 

 

 

 

Related Stories

Market Data | Aug 10, 2018

Construction material prices inch down in July

Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.

Market Data | Aug 9, 2018

Projections reveal nonresidential construction spending to grow

AIA releases latest Consensus Construction Forecast.

Market Data | Aug 7, 2018

New supply's impact illustrated in Yardi Matrix national self storage report for July

The metro with the most units under construction and planned as a percent of existing inventory in mid-July was Nashville, Tenn.

Market Data | Aug 3, 2018

U.S. multifamily rents reach new heights in July

Favorable economic conditions produce a sunny summer for the apartment sector.

Market Data | Aug 2, 2018

Nonresidential construction spending dips in June

“The hope is that June’s construction spending setback is merely a statistical aberration,” said ABC Chief Economist Anirban Basu.

Market Data | Aug 1, 2018

U.S. hotel construction pipeline continues moderate growth year-over-year

The hotel construction pipeline has been growing moderately and incrementally each quarter.

Market Data | Jul 30, 2018

Nonresidential fixed investment surges in second quarter

Nonresidential fixed investment represented an especially important element of second quarter strength in the advance estimate.

Market Data | Jul 11, 2018

Construction material prices increase steadily in June

June represents the latest month associated with rapidly rising construction input prices.

Market Data | Jun 26, 2018

Yardi Matrix examines potential regional multifamily supply overload

Outsize development activity in some major metros could increase vacancy rates and stagnate rent growth.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021