A new report from the Associated Builders and Contractors’ Construction Backlog Indicator (CBI) indicates that the CBI has grown to nine months during the first quarter of 2017. The number reflects an 8.1 percent increase (0.4 months) from the fourth quarter of 2016, on a year-over-year basis. The CBI is a key economic indicator that reflects the amount of construction work nationwide under contract, but not yet completed. It is measured in months, with a lengthening backlog implying expanding demand for construction services (though it can also reflect a shortage of construction labor).
Surging financial markets have helped support construction activity in financial centers like New York, Philadelphia and Boston. The report found that expanding cyber-security and life sciences activity supported markets such as Washington/Baltimore; Austin; Silicon Valley; and Seattle. Chicago continues to be a weak spot, registering slow job growth relative to other major U.S. metro areas in recent quarters.
