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

Senior Living Design | May 9, 2017

Designing for a future of limited mobility

There is an accessibility challenge facing the U.S. An estimated 1 in 5 people will be aged 65 or older by 2040.

Industry Research | May 4, 2017

How your AEC firm can go from the shortlist to winning new business

Here are four key lessons to help you close more business.

Engineers | May 3, 2017

At first buoyed by Trump election, U.S. engineers now less optimistic about markets, new survey shows

The first quarter 2017 (Q1/17) of ACEC’s Engineering Business Index (EBI) dipped slightly (0.5 points) to 66.0.

Market Data | May 2, 2017

Nonresidential Spending loses steam after strong start to year

Spending in the segment totaled $708.6 billion on a seasonally adjusted, annualized basis.

Market Data | May 1, 2017

Nonresidential Fixed Investment surges despite sluggish economic in first quarter

Real gross domestic product (GDP) expanded 0.7 percent on a seasonally adjusted annualized rate during the first three months of the year.

Industry Research | Apr 28, 2017

A/E Industry lacks planning, but still spending large on hiring

The average 200-person A/E Firm is spending $200,000 on hiring, and not budgeting at all.

Market Data | Apr 19, 2017

Architecture Billings Index continues to strengthen

Balanced growth results in billings gains in all regions.

Market Data | Apr 13, 2017

2016’s top 10 states for commercial development

Three new states creep into the top 10 while first and second place remain unchanged.

Market Data | Apr 6, 2017

Architecture marketing: 5 tools to measure success

We’ve identified five architecture marketing tools that will help your firm evaluate if it’s on the track to more leads, higher growth, and broader brand visibility.

Market Data | Apr 3, 2017

Public nonresidential construction spending rebounds; overall spending unchanged in February

The segment totaled $701.9 billion on a seasonally adjusted annualized rate for the month, marking the seventh consecutive month in which nonresidential spending sat above the $700 billion threshold.

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