Current data indicates a 4.5 percent increase in construction backlog orders to 6.07 months, up from 5.81 months in Q4 2009. The ABC further stated that between February and March, the CBI reflected a 17 percent month-on-month increase, with the latest data indicating a current standing of 6.05 months.
While the CBI experienced gains during that time period in all areas of the country except for the West, the Northeastern US is the only region to report a higher backlog when compared to the same period in 2009."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 ABC Chief Economist Anirban Basu. "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."