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 | Feb 20, 2019

Strong start to 2019 for architecture billings

“The government shutdown affected architecture firms, but doesn’t appear to have created a slowdown in the profession,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD, in the latest ABI report.

Market Data | Feb 19, 2019

ABC Construction Backlog Indicator steady in Q4 2018

CBI reached a record high of 9.9 months in the second quarter of 2018 and averaged about 9.1 months throughout all four quarters of last year.

Market Data | Feb 14, 2019

U.S. Green Building Council announces top 10 countries and regions for LEED green building

The list ranks countries and regions in terms of cumulative LEED-certified gross square meters as of December 31, 2018.

Market Data | Feb 13, 2019

Increasingly tech-enabled construction industry powers forward despite volatility

Construction industry momentum to carry through first half of 2019.

Market Data | Feb 4, 2019

U.S. Green Building Council announces annual Top 10 States for LEED Green Building in 2018

Illinois takes the top spot as USGBC defines the next generation of green building with LEED v4.1.

Market Data | Feb 4, 2019

Nonresidential construction spending dips in November

Total nonresidential spending stood at $751.5 billion on a seasonally adjusted annualized rate.

Market Data | Feb 1, 2019

The year-end U.S. hotel construction pipeline continues steady growth trend

Project counts in the early planning stage continue to rise reaching an all-time high of 1,723 projects/199,326 rooms.

Market Data | Feb 1, 2019

Construction spending is projected to increase by more than 11% through 2022

FMI’s annual outlook also expects the industry’s frantic M&A activity to be leavened by caution going forward.

Market Data | Jan 23, 2019

Architecture billings slow, but close 2018 with growing demand

AIA’s Architecture Billings Index (ABI) score for December was 50.4 compared to 54.7 in November.

Market Data | Jan 16, 2019

AIA 2019 Consensus Forecast: Nonresidential construction spending to rise 4.4%

The education, public safety, and office sectors will lead the growth areas this year, but AIA's Kermit Baker offers a cautious outlook for 2020.

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