flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC’s Construction Backlog Indicator plummets in August; Contractor Confidence down

Market Data

ABC’s Construction Backlog Indicator plummets in August; Contractor Confidence down

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August.


By ABC | September 15, 2021
ABC Construction Backlog Indicator and Construction Confidence Index
Courtesy ABC

Associated Builders and Contractors reports today that its Construction Backlog Indicator fell sharply to 7.7 months in August, according to an ABC member survey conducted Aug. 19 to Sep.1. The reading is down 0.8 months from July 2021 and down 0.3 months from August 2020.

 

 

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August but remain above the threshold of 50, indicating expectations of growth over the next six months.

 

 

“Both contractor backlog and confidence have begun to fade,” said ABC Chief Economist Anirban Basu. “Higher materials prices and labor costs have conspired to put more projects on hold. In many instances, expanding costs have rendered projects infeasible.

“That said, it is still the case that contractors collectively anticipate sales, staffing levels and margins to rise over the next six months,” said Basu. “The expected pace of improvement has softened, however. With so much liquidity continuing to be injected into financial systems, investors have considerable sums to deploy in new investments. Real estate valuations and construction volumes benefit from such dynamics. Recent dips in commodity prices and more normal labor market functioning should help translate into slower cost escalations and rebounding backlog during the months ahead, ultimately reversing the backlog decline sustained in August.”

 

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