flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator and Contractor Confidence Index rise in June

Market Data

ABC’s Construction Backlog Indicator and Contractor Confidence Index rise in June

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June.


By ABC | July 13, 2021

Associated Builders and Contractors reports today that its Construction Backlog Indicator rose to 8.5 months in June, according to an ABC member survey conducted June 20-July 6, 0.5 months higher than in May 2021 and 0.4 months higher than in June 2020.

 

 

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.

 

 

“Nonresidential contractors continue to predict a strong rebound in activity over the balance of the year,” said ABC Chief Economist Anirban Basu. “Despite recent weakness in industry employment and spending data, contractors collectively remain upbeat. The neck-snapping pace of economic recovery, along with low financing costs and the return of projects that had been placed on the back burner during the pandemic, is translating into rising backlog and optimistic perspectives on employment, sales and profit margins.

“Rapidly rising materials prices was one of the leading threats to a vigorous nonresidential construction recovery; however, that factor has become a bit less concerning in recent weeks,” said Basu. “Still, materials prices are likely to remain meaningfully above pre-pandemic levels. Moreover, the shortage of skilled workers continues to worsen, driving up wages and project bids in the process. Demand for construction services is expected to be strong enough during the months ahead to allow contractors to pass many of these higher costs onto the purchasers of construction services, preserving margins in the process.”

 

Related Stories

Market Data | Oct 31, 2016

Nonresidential fixed investment expands again during solid third quarter

The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.

Market Data | Oct 28, 2016

U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017

Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.

Industry Research | Oct 25, 2016

New HOK/CoreNet Global report explores impact of coworking on corporate real rstate

“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.

Market Data | Oct 24, 2016

New construction starts in 2017 to increase 5% to $713 billion

Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.

High-rise Construction | Oct 21, 2016

The world’s 100 tallest buildings: Which architects have designed the most?

Two firms stand well above the others when it comes to the number of tall buildings they have designed.

Market Data | Oct 19, 2016

Architecture Billings Index slips consecutive months for first time since 2012

“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.

Market Data | Oct 11, 2016

Building design revenue topped $28 billion in 2015

Growing profitability at architecture firms has led to reinvestment and expansion

Market Data | Oct 4, 2016

Nonresidential spending slips in August

Public sector spending is declining faster than the private sector.

Industry Research | Oct 3, 2016

Structure Tone survey shows cost is still a major barrier to building green

Climate change, resilience and wellness are also growing concerns.

Industry Research | Sep 27, 2016

Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry

Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021