The nation’s Construction Backlog Indicator (CBI) for July rose 8.9 percent to 6.1 months from 5.6 months in June, Associated Builders and Contractors Inc. (ABC) reported yesterday.

Used as a gauge of the amount of work, measured in dollars, that companies are contracted to complete in the future, the CBI is an indicator focused on the U.S. commercial, institutional, industrial and infrastructure construction industries. It is published bi-monthly using data collected from ABC members.

“While the magnitude of the monthly increase was significant and impressive, June was the lowest point for the CBI since ABC began collecting national data in November 2008,” said Chief Economist Anirban Basu. “At that time, the CBI stood at 7.1 months, or 14 percent above its current level of 6.1 months.”

Backlog improved slightly in July among smaller and larger companies with less than $30 million in revenue collectively registering an increase in average backlog to 5.7 months compared to 4.7 months in June. Larger companies with annual revenues between $30 million and $50 million registered an average backlog of 4.7 months in July, up from 4.2 months in June.

The largest companies, however, with annual revenues exceeding $100 million, experienced a slight decline in average backlog to 7.3 months in July from 7.5 months in June.

“In July, the pre-existing trend shifted as smaller firms appeared to pick up a bit of momentum,” Basu said. “This may be because these firms have been the most eager to line up new work in recent months and aggressive marketing and bidding among this group appears to be reflected in the backlog data. That said, larger firms generally continue to command longer and more stable average backlogs.

Of the three construction industry segments, commercial/institutional, heavy industrial and infrastructure, which all reported an increase in backlog in July compared to June, only infrastructure has experienced an overall increase in average backlog since ABC began tracking the data in November 2008. And since that time, only one of the five firm size categories that ABC monitors – companies with annual revenues between $50 million and $75 million – have posted an overall increase in average backlog.

“The July data strongly reflect the effects of the stimulus package signed into law in February on the commercial, institutional, industrial and infrastructure construction segments,” Basu said. “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.”