Associated Builders and Contractors recently reported that its Construction Backlog Indicator contracted to 8.1 months during January 2019, down 0.8 months or 9.3% compared to the fourth quarter 2018 reading of 8.9 months.
“This represents the latest in a number of indicators suggesting that U.S. economic momentum has begun to wane,” said Anirban Basu, ABC’s chief economist. “Other data tracking retail sales, employment growth and the trade deficit suggest that in contrast to 2018, this year will not be as strong from an economic growth perspective.
“January’s decline in nonresidential backlog was significant, slipping to levels last observed in 2014,” said Basu. “From an industry segment perspective, the decline in backlog was especially sharp in the infrastructure category, which may have been related to the federal shutdown in January.
“There was one meaningful exception in the Middle States, where backlog continues to rise,” said Basu. “This is potentially a result of stronger industrial production growth in 2017 and 2018, which has produced greater demand for modern industrial space. As with any January data release, weather may also have played a role in shaping the results. Accordingly, more clarity regarding contractual activity will arrive during the months ahead.”
Related Stories
Market Data | Oct 1, 2021
Nonresidential construction spending dips in August
Spending declined on a monthly basis in 10 of the 16 nonresidential subcategories.
Market Data | Sep 29, 2021
One-third of metro areas lost construction jobs between August 2020 and 2021
Lawrence-Methuen Town-Salem, Mass. and San Diego-Carlsbad, Calif. top lists of metros with year-over-year employment increases.
Market Data | Sep 28, 2021
Design-Build projects should continue to take bigger shares of construction spending pie over next five years
FMI’s new study finds collaboration and creativity are major reasons why owners and AEC firms prefer this delivery method.
Market Data | Sep 22, 2021
Architecture billings continue to increase
The ABI score for August was 55.6, up from July’s score of 54.6.
Market Data | Sep 20, 2021
August construction employment lags pre-pandemic peak in 39 states
The coronavirus delta variant and supply problems hold back recovery.
Market Data | Sep 15, 2021
ABC’s Construction Backlog Indicator plummets in August; Contractor Confidence down
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August.
Market Data | Sep 7, 2021
Construction sheds 3,000 jobs in August
Gains are limited to homebuilding as other contractors struggle to fill both craft and salaried positions.
Market Data | Sep 3, 2021
Construction workforce shortages reach pre-pandemic levels
Coronavirus continues to impact projects and disrupt supply chains.
Multifamily Housing | Sep 1, 2021
Top 10 outdoor amenities at multifamily housing developments for 2021
Fire pits, lounge areas, and covered parking are the most common outdoor amenities at multifamily housing developments, according to new research from Multifamily Design+Construction.
Market Data | Sep 1, 2021
Construction spending posts small increase in July
Coronavirus, soaring costs, and supply disruptions threaten to erase further gains.