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

Reconstruction & Renovation | Mar 28, 2022

Is your firm a reconstruction sector giant?

Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.

Industry Research | Mar 28, 2022

ABC Construction Backlog Indicator unchanged in February

Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8.

Industry Research | Mar 23, 2022

Architecture Billings Index (ABI) shows the demand for design service continues to grow

Demand for design services in February grew slightly since January, according to a new report today from The American Institute of Architects (AIA).

Codes and Standards | Mar 1, 2022

Engineering Business Sentiment study finds optimism despite growing economic concerns

The ACEC Research Institute found widespread optimism among engineering firm executives in its second quarterly Engineering Business Sentiment study.

Codes and Standards | Feb 24, 2022

Most owners adapting digital workflows on projects

Owners are more deeply engaged with digital workflows than other project team members, according to a new report released by Trimble and Dodge Data & Analytics.

Market Data | Feb 23, 2022

2022 Architecture Billings Index indicates growth

The Architectural Billings Index measures the general sentiment of U.S. architecture firms about the health of the construction market by measuring 1) design billings and 2) design contracts. Any score above 50 means that, among the architecture firms surveyed, more firms than not reported seeing increases in design work vs. the previous month.    

Market Data | Feb 15, 2022

Materials prices soar 20% between January 2021 and January 2022

Contractors' bid prices accelerate but continue to lag cost increases.

Market Data | Feb 4, 2022

Construction employment dips in January despite record rise in wages, falling unemployment

The quest for workers intensifies among industries.

Market Data | Feb 2, 2022

Majority of metro areas added construction jobs in 2021

Soaring job openings indicate that labor shortages are only getting worse.

Market Data | Feb 2, 2022

Construction spending increased in December for the month and the year

Nonresidential and public construction lagged residential sector.

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