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 | Sep 22, 2016

Architecture Billings Index slips, overall outlook remains positive

Business conditions are slumping in the Northeast.

Market Data | Sep 20, 2016

Backlog skyrockets for largest firms during second quarter, but falls to 8.5 months overall

While a handful of commercial construction segments continue to be associated with expanding volumes, for the most part, the average contractor is no longer getting busier, says ABC Chief Economist Anirban Basu.

Designers | Sep 13, 2016

5 trends propelling a new era of food halls

Food halls have not only become an economical solution for restauranteurs and chefs experiencing skyrocketing retail prices and rents in large cities, but they also tap into our increased interest in gourmet locally sourced food, writes Gensler's Toshi Kasai.

Building Team | Sep 6, 2016

Letting your resource take center stage: A guide to thoughtful site selection for interpretive centers

Thoughtful site selection is never about one factor, but rather a confluence of several components that ultimately present trade-offs for the owner.

Market Data | Sep 2, 2016

Nonresidential spending inches lower in July while June data is upwardly revised to eight-year record

Nonresidential construction spending has been suppressed over the last year or so with the primary factor being the lack of momentum in public spending.

Industry Research | Sep 1, 2016

CannonDesign releases infographic to better help universities obtain more R&D funding

CannonDesign releases infographic to better help universities obtain more R&D funding.

Industry Research | Aug 25, 2016

Building bonds: The role of 'trusted advisor' is earned not acquired

A trusted advisor acts as a guiding partner over the full course of a professional relationship.

Multifamily Housing | Aug 17, 2016

A new research platform launches for a data-deprived multifamily sector

The list of leading developers, owners, and property managers that are funding the NMHC Research Foundation speaks to the information gap it hopes to fill.  

Hotel Facilities | Aug 17, 2016

Hotel construction continues to flourish in major cities

But concerns about overbuilding persist.

Market Data | Aug 16, 2016

Leading economists predict construction industry growth through 2017

The Chief Economists for ABC, AIA, and NAHB all see the construction industry continuing to expand over the next year and a half.

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