According to the Associated Builders and Contractors (ABC), the backlog for construction projects rose 8.9 percent for July. Currently, the amount of time it will take to complete construction projects sits at 6.1 months, which is up from 5.6 months in June.
Anirban Basu, chief economist for ABC, noted that the construction backlog for June represented the lowest number since the organization began tracking the statistic in November of 2008, when the backlog sat at 7.1 months.
He also noted that the increase in the backlog means that federal stimulus funds are having a positive effect on the construction business.
"In the months ahead, we expect higher levels of actual construction spending, a welcome sign for the industry and the economy at large, and an indication that the downturn may be over for the nonresidential construction industry, though not all segments," Basu said.
Recently, IHS Global Insight noted that commercial construction spending is down by an annual rate of 27.9 percent. Overall, the group expects construction spending to be down by 12 percent for 2009.
