The forward-looking CBI gauges the amount of construction
work under contract and expected to be completed in the future.
The latest Construction Backlog Indicator index from
the Associated Builders and Contractors shows possible positive trends for the industry.
The index showed a 4.5 percent increase in
backlog orders up to 6.07 months long for the first quarter of 2010.
The
figures are up from a 5.81-month backlog in the fourth quarter of 2009. From
February to March, the index rose 17 percent.
The
forward-looking CBI gauges the amount of construction work under contract and expected
to be completed in the future.
"The fact that the CBI
is on the rise illustrates that the improvements recently seen in various other
indicators, including construction spending, will continue through much of the
balance of 2010," said Anirban Basu, the association’s chief economist.
"However, the overall impact of the recession may not be at an end or
approaching an end. It remains too soon to tell whether the current momentum
will continue through 2011.
"As an indicator, the
nonresidential construction industry tends to lag the overall economy by 12 to
24 months. With the broader economy having been in recovery for the better part
of a year, and with stimulus spending still having an impact, the expectation
is that for now, backlog will remain stable or better in the months
ahead," Basu said. "Still, there are many forces at work that suggest
that the sector's recovery may not be sustained as stimulus monies are steadily
drawn down and commercial construction remains weak due to high vacancy rates
and tight credit.”
