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 | Nov 2, 2018

Nonresidential spending retains momentum in September, up 8.9% year over year

Total nonresidential spending stood at $767.1 billion on a seasonally adjusted, annualized rate in September.

Market Data | Oct 30, 2018

Construction projects planned and ongoing by world’s megacities valued at $4.2trn

The report states that Dubai tops the list with total project values amounting to US$374.2bn.

Market Data | Oct 26, 2018

Nonresidential fixed investment returns to earth in Q3

Despite the broader economic growth, fixed investment inched 0.3% lower in the third quarter.

Market Data | Oct 24, 2018

Architecture firm billings slow but remain positive in September

Billings growth slows but is stable across sectors.

Market Data | Oct 19, 2018

New York’s five-year construction spending boom could be slowing over the next two years

Nonresidential building could still add more than 90 million sf through 2020.

Market Data | Oct 8, 2018

Global construction set to rise to US$12.9 trillion by 2022, driven by Asia Pacific, Africa and the Middle East

The pace of global construction growth is set to improve slightly to 3.7% between 2019 and 2020.

Market Data | Sep 25, 2018

Contractors remain upbeat in Q2, according to ABC’s latest Construction Confidence Index

More than three in four construction firms expect that sales will continue to rise over the next six months, while three in five expect higher profit margins.

Market Data | Sep 24, 2018

Hotel construction pipeline reaches record highs

There are 5,988 projects/1,133,017 rooms currently under construction worldwide.

Market Data | Sep 21, 2018

JLL fit out report portrays a hot but tenant-favorable office market

This year’s analysis draws from 2,800 projects.

Market Data | Sep 21, 2018

Mid-year forecast: No end in sight for growth cycle

The AIA Consensus Construction Forecast is projecting 4.7% growth in nonresidential construction spending in 2018.

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