flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator inches lower in July

Market Data

ABC’s Construction Backlog Indicator inches lower in July

Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series.


By ABC | September 17, 2019

Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.5 months in July 2019, down 0.3 months or 2.9% from June 2019, when CBI stood at 8.8 months.

“Construction backlog declined in all four major regions in July,” said ABC Chief Economist Anirban Basu. “While the Northeast and South—the regions with the lengthiest backlog—experienced minor dips, the West and the Middle States exhibited more significant declines. Despite the 9.3% monthly decline in the West region, backlog remains above levels observed in early 2019. For the Middle States, however, backlog is at its lowest level since the last quarter of 2015, largely due to a dip in activity in the commercial/institutional segment, the largest segment represented in ABC’s survey.

“Among the three industry subsegments measured by CBI, only the commercial/institutional category experienced a backlog decrease in July 2019,” said Basu. “Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series. This is largely attributable to the energy sector, with particular strength apparent in the South. Regions tied to traditional manufacturing activities did not fare as well in July.

“Only companies with revenues lower than $30 million per year experienced shorter backlog in July,” said Basu. “This may be cause for concern since smaller firms tend to be more vulnerable to economic fluctuations. Much of the decline in backlog among this group occurred among those specializing in commercial construction. 

“Despite the recent, albeit brief, losing streak, backlog levels remain consistent with healthy construction activity over the near-term,” said Basu. “Contractors collectively expect rising sales to continue and are planning to add to staffing levels, though their exuberance has been somewhat tempered in recent months. If the U.S. economy continues to soften, including in the nation’s manufacturing industry, contractor confidence levels will likely continue to subside along with backlog. Yet, for now, the nation’s nonresidential construction segment remains busy.”

 

 

 

 

 

Related Stories

Market Data | Jul 18, 2019

Construction contractors remain confident as summer begins

Contractors were slightly less upbeat regarding profit margins and staffing levels compared to April.

Market Data | Jul 17, 2019

Design services demand stalled in June

Project inquiry gains hit a 10-year low.

Market Data | Jul 16, 2019

ABC’s Construction Backlog Indicator increases modestly in May

The Construction Backlog Indicator expanded to 8.9 months in May 2019.

K-12 Schools | Jul 15, 2019

Summer assignments: 2019 K-12 school construction costs

Using RSMeans data from Gordian, here are the most recent costs per square foot for K-12 school buildings in 10 cities across the U.S.

Market Data | Jul 12, 2019

Construction input prices plummet in June

This is the first time in nearly three years that input prices have fallen on a year-over-year basis.

Market Data | Jul 1, 2019

Nonresidential construction spending slips modestly in May

Among the 16 nonresidential construction spending categories tracked by the Census Bureau, five experienced increases in monthly spending.

Market Data | Jul 1, 2019

Almost 60% of the U.S. construction project pipeline value is concentrated in 10 major states

With a total of 1,302 projects worth $524.6 billion, California has both the largest number and value of projects in the U.S. construction project pipeline.

Market Data | Jun 21, 2019

Architecture billings remain flat

AIA’s Architecture Billings Index (ABI) score for May showed a small increase in design services at 50.2.

Market Data | Jun 19, 2019

Number of U.S. architects continues to rise

New data from NCARB reveals that the number of architects continues to increase. 

Market Data | Jun 12, 2019

Construction input prices see slight increase in May

Among the 11 subcategories, six saw prices fall last month, with the largest decreases in natural gas.

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