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 | Dec 19, 2018

Brokers look forward to a commercial real estate market that mirrors 2018’s solid results

Respondents to a recent Transwestern poll expect flat to modest growth for rents and investment in offices, MOBs, and industrial buildings.

Market Data | Dec 19, 2018

When it comes to economic clout, New York will far outpace other U.S. metros for decades to come

But San Jose, Calif., is expected to have the best annual growth rate through 2035, according to Oxford Economics’ latest Global Cities report.

Market Data | Dec 19, 2018

Run of positive billings continues at architecture firms

November marked the fourteenth consecutive month of increasing demand for architectural firm services.

Market Data | Dec 5, 2018

ABC predicts construction sector will remain strong in 2019

Job growth, high backlog and healthy infrastructure investment all spell good news for the industry.

Market Data | Dec 4, 2018

Nonresidential spending rises modestly in October

Thirteen out of 16 subsectors are associated with year-over-year increases.

Market Data | Nov 20, 2018

Construction employment rises from October 2017 to October 2018 in 44 states and D.C.

Texas has biggest annual job increase while New Jersey continues losses; Iowa, Florida and California have largest one-month gains as Mississippi and Louisiana trail.

Market Data | Nov 15, 2018

Architecture firm billings continue to slow, but remain positive in October

Southern region reports decline in billings for the first time since June 2012.

Market Data | Nov 14, 2018

A new Joint Center report finds aging Americans less prepared to afford housing

The study foresees a significant segment of seniors struggling to buy or rent on their own or with other people.

Market Data | Nov 12, 2018

Leading hotel markets in the U.S. construction pipeline

Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs.

Market Data | Nov 6, 2018

Unflagging national office market enjoys economic tailwinds

Stable vacancy helped push asking rents 4% higher in third quarter.

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