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 | Aug 2, 2017

Nonresidential Construction Spending falls in June, driven by public sector

June’s weak construction spending report can be largely attributed to the public sector.

Market Data | Jul 31, 2017

U.S. economic growth accelerates in second quarter; Nonresidential fixed investment maintains momentum

Nonresidential fixed investment, a category of GDP embodying nonresidential construction activity, expanded at a 5.2% seasonally adjusted annual rate.

Multifamily Housing | Jul 27, 2017

Apartment market index: Business conditions soften, but still solid

Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council. 

Market Data | Jul 25, 2017

What's your employer value proposition?

Hiring and retaining talent is one of the top challenges faced by most professional services firms.

Market Data | Jul 25, 2017

Moderating economic growth triggers construction forecast downgrade for 2017 and 2018

Prospects for the construction industry have weakened with developments over the first half of the year.

Industry Research | Jul 6, 2017

The four types of strategic real estate amenities

From swimming pools to pirate ships, amenities (even crazy ones) aren’t just perks, but assets to enhance performance.

Market Data | Jun 29, 2017

Silicon Valley, Long Island among the priciest places for office fitouts

Coming out on top as the most expensive market to build out an office is Silicon Valley, Calif., with an out-of-pocket cost of $199.22.

Market Data | Jun 26, 2017

Construction disputes were slightly less contentious last year

But poorly written and administered contracts are still problems, says latest Arcadis report.

Industry Research | Jun 26, 2017

Time to earn an architecture license continues to drop

This trend is driven by candidates completing the experience and examination programs concurrently and more quickly.

Industry Research | Jun 22, 2017

ABC's Construction Backlog Indicator rebounds in 2017

The first quarter showed gains in all categories.

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