flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady

Market Data

ABC’s Construction Backlog Indicator Jumps in September; Contractor Confidence Remains Steady

Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5.


By ABC | October 14, 2022
Construction Backlog September
Courtesy Pexels.

Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to 9.0 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 5. The reading is 1.4 months higher than in September 2021.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for September 2022.

Backlog reached its highest level since May 2022 and is once again above the level observed at the start of the pandemic (8.9 months in February 2020). Backlog in heavy industrial increased sizably in September, spurred by a 21.5% year-over-year increase in manufacturing-related construction spending.

ABC’s Construction Confidence Index readings for profit margins and staffing levels increased in September, while the reading for sales moved slightly lower. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.

“The construction confidence and backlog metrics appear strong despite the U.S. economy facing headwinds like inflation, financial market volatility and rapidly rising borrowing costs,” said ABC Chief Economist Anirban Basu. “Contractors remain decidedly upbeat, with backlog expanding and expectations for rising sales, employment and profit margins over the next six months.

“One would think the recent surge in interest rates would be enough to dampen contractor confidence,” said Basu. “Instead, project owners continue to move forward with a significant number of projects. Faced with high demand for their services, contractors continue to show pricing power, helping to offset rising compensation and other construction delivery costs.”

Construction Backlog Indicator September
Courtesy ABC.

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months.

Related Stories

Market Data | Sep 15, 2020

7 must reads for the AEC industry today: September 15, 2020

Energy efficiency considerations for operating buildings during a pandemic and is there really a glass box paradox?

Market Data | Sep 14, 2020

6 must reads for the AEC industry today: September 14, 2020

63% of New York's restaurants could be gone by 2021 and new weapons in the apartment amenities arms race.

Market Data | Sep 11, 2020

5 must reads for the AEC industry today: September 11, 2020

Des Moines University begins construction on new campus and the role of urgent care in easing the oncology journey.

Market Data | Sep 10, 2020

6 must reads for the AEC industry today: September 10, 2020

Taipei's new Performance Hall and Burger King's touchless restaurant designs.

Market Data | Sep 9, 2020

6 must reads for the AEC industry today: September 9, 2020

What will the 'new normal' look like and the AIA hands out its Twenty-five Year Award.

Market Data | Sep 8, 2020

‘New normal’: IAQ, touchless, and higher energy bills?

Not since 9/11 has a single event so severely rocked the foundation of the commercial building industry.

Market Data | Sep 8, 2020

7 must reads for the AEC industry today: September 8, 2020

Google proposes 40-acre redevelopment plan and office buildings should be an essential part of their communities.

Market Data | Sep 4, 2020

6 must reads for the AEC industry today: September 4, 2020

10 Design to redevelop Nanjing AIrport and TUrner Construction takes a stand against racism.

Market Data | Sep 4, 2020

Construction sector adds 16,000 workers in August but nonresidential jobs shrink

Association survey finds contractor pessimism is increasing.

Market Data | Sep 3, 2020

6 must reads for the AEC industry today: September 3, 2020

New affordable housing comes to the Bronx and California releases guide for state water policy.

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