Construction Backlog Indicator Fell in September
The Associated Builders and Contractors' Construction Backlog Indicator (CBI) for September 2019 saw a setback. The indicator fell by one-tenth of a month or by 0.8% since August 2019. The CBI now sits at 8.9 months.
ABC Chief Economist Anirban Basu said the trends in the most recent CBI will "remain in place." The spending in the public construction sphere has contributed to industry spending growth. Private construction spending has instead fallen to the wayside.
Backlog within the infrastructure segment rose by about 14%. Basu said this is likely because of the U.S.' low unemployment rate, higher incomes, a good consumer sector and a rising stock market.
"Among other things, this produces greater income, sales and property tax collections, which in turn increases funds available for publicly financed construction," Basu said in a statement. "Incredibly low interest rates help state and local governments leverage improved cash flow into support for substantial projects, including in categories such as water supply, transportation and public safety."
—Christie Citranglo, editorial associate