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 | Jan 4, 2021

Nonresidential construction spending shrinks further in November

Many commercial projects languish, even while homebuilding soars.

Market Data | Dec 29, 2020

Multifamily transactions drop sharply in 2020, according to special report from Yardi Matrix

Sales completions at end of Q3 were down over 41 percent from the same period a year ago.

Market Data | Dec 28, 2020

New coronavirus recovery measure will provide some needed relief for contractors coping with project cancellations, falling demand

Measure’s modest amount of funding for infrastructure projects and clarification that PPP loans may not be taxed will help offset some of the challenges facing the construction industry.

Market Data | Dec 28, 2020

Construction employment trails pre-pandemic levels in 35 states despite gains in industry jobs from October to November in 31 states

New York and Vermont record worst February-November losses, Virginia has largest pickup.

Market Data | Dec 16, 2020

Architecture billings lose ground in November

The pace of decline during November accelerated from October, posting an Architecture Billings Index (ABI) score of 46.3 from 47.5.

AEC Tech | Dec 8, 2020

COVID-19 affects the industry’s adoption of ConTech in different ways

A new JLL report assesses which tech options got a pandemic “boost.”

Market Data | Dec 7, 2020

Construction sector adds 27,000 jobs in November

Project cancellations, looming PPP tax bill will undercut future job gains.

Market Data | Dec 3, 2020

Only 30% of metro areas add construction jobs in latest 12 months

Widespread project postponements and cancellations force layoffs.

Market Data | Dec 2, 2020

New Passive House standards offers prescriptive path that reduces costs

Eliminates requirement for a Passive House consultant and attendant modeling.

Market Data | Dec 2, 2020

Nonresidential construction spending remains flat in October

Residential construction expands as many commercial projects languish.

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