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 | Nov 22, 2021

Only 16 states and D.C. added construction jobs since the pandemic began

Texas, Wyoming have worst job losses since February 2020, while Utah, South Dakota add the most.

Market Data | Nov 10, 2021

Construction input prices see largest monthly increase since June

Construction input prices are 21.1% higher than in October 2020.

Market Data | Nov 5, 2021

Construction firms add 44,000 jobs in October

Gain occurs even as firms struggle with supply chain challenges.

Market Data | Nov 3, 2021

One-fifth of metro areas lost construction jobs between September 2020 and 2021

Beaumont-Port Arthur, Texas and Sacramento--Roseville--Arden-Arcade Calif. top lists of gainers.

Market Data | Nov 2, 2021

Construction spending slumps in September

A drop in residential work projects adds to ongoing downturn in private and public nonresidential.

Hotel Facilities | Oct 28, 2021

Marriott leads with the largest U.S. hotel construction pipeline at Q3 2021 close

In the third quarter alone, Marriott opened 60 new hotels/7,882 rooms accounting for 30% of all new hotel rooms that opened in the U.S.

Hotel Facilities | Oct 28, 2021

At the end of Q3 2021, Dallas tops the U.S. hotel construction pipeline

The top 25 U.S. markets account for 33% of all pipeline projects and 37% of all rooms in the U.S. hotel construction pipeline.

Market Data | Oct 27, 2021

Only 14 states and D.C. added construction jobs since the pandemic began

Supply problems, lack of infrastructure bill undermine recovery.

Market Data | Oct 26, 2021

U.S. construction pipeline experiences highs and lows in the third quarter

Renovation and conversion pipeline activity remains steady at the end of Q3 ‘21, with conversion projects hitting a cyclical peak, and ending the quarter at 752 projects/79,024 rooms.

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