The U.S. South has recorded the longest backlog of construction projects ever, the Associated Builders and Contractors says.
ABC’s “Construction Backlog Indicator” has reached 10.3 months in the region, which is two months longer than the national backlog.
"Nonresidential construction remains one of the nation's leading engines of economic growth," said ABC Chief Economist Anirban Basu. "Industry spending is up 11 percent on a year-over-year basis, and the most recent backlog indicator strongly suggests that construction volumes will continue to recover. Unlike prior years, both the private and public sectors are now contributing to spending growth.
"While rapid economic growth continues to elude America, the economy has been strong enough to produce more than 2.6 million net new jobs over the past year," said Basu. "Wage growth is poised to accelerate and residential markets continue to improve, with single family activity picking up recently and home prices continuing to edge higher in many communities. This implies ongoing support for commercial construction and stable tax collections or better, which ultimately translates into more public works projects."