Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Backlog fell for every size of contractor except for those with under $30 million in annual revenues in February. Over the past year, however, the largest contractors—those with greater than $50 million in revenues—have experienced the greatest decline in backlog.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels also decreased in February. However, all three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog is declining and confidence began to fade modestly in February,” said ABC Chief Economist Anirban Basu. “While it is far too early to predict an industrywide downturn given that confidence readings continue to signal growth along sales, employment and profit margin dimensions, it appears that a rising tide of project cancellations and postponements has begun to make its mark.
“With excess inflation remaining stubbornly durable, at least according to certain measures, interest rates are poised to remain higher for longer,” said Basu. “That gives higher borrowing costs more time to upset the economic momentum that has so surprised economists over the past two years and has provided support for various nonresidential construction activities. With so much federal money still entering the economy, there will continue to be support for growth in certain construction segments, including public works and manufacturing-related megaprojects, but industry weakness is more apparent in segments that rely more purely on private financing.”
Related Stories
Sponsored | | Jul 17, 2014
A major hop forward
The construction of efficient metal buildings has helped Perrault Farms expand its hops-harvesting business.
| Jul 17, 2014
22 land questions to decide if your build site works
When you’re ready to build, land needs a serious amount of attention. Since it can singlehandedly shift your building plans, land must be investigated, questioned, and eyed from every angle. SPONSORED CONTENT
| Jul 16, 2014
Nonresidential construction starts up 34% in June
Construction starts for nonresidential work saw a surge in June, rising more than a third compared with the previous month, according to Reed Construction Data.
| Jul 16, 2014
ASHRAE, IAQA team up to improve resources on indoor air quality
Indoor Air Quality Association will become part of the ASHRAE organization while maintaining its own brand and board; HQ will relocate to Atlanta.
| Jul 15, 2014
Michael Graves talks with Washington Post about new design eye from life in a wheelchair
Celebrated American architect Michael Graves sits with the Washington Post to talk about how being on a wheelchair changed the way he focuses on design.
| Jul 15, 2014
A look into the history of modular construction
Modular construction is more than a century old, and throughout its lifespan, the methods have been readapted to meet specific needs of different eras.
| Jul 15, 2014
AECOM to buy URS Corporation in $6 billion deal
Together, the firms will form a massive global giant with more than $19 billion in revenue and 95,000 employees in 150 countries.
| Jul 15, 2014
Trade groups form task force to further transparency and optimization of building product ingredients
The Harmonization Task Group will offer marketplace benefits including consistent messaging, simplification, elimination of redundancies, and creation of more accurate, faster and less costly assessments.
| Jul 14, 2014
Meet the bamboo-tent hotel that can grow
Beijing-based design cooperative Penda designed a bamboo hotel that can easily expand vertically or horizontally.
| Jul 11, 2014
First look: Jeanne Gang reinterprets San Francisco Bay windows in new skyscraper scheme
Chicago architect Jeanne Gang has designed a 40-story residential building in San Francisco that is inspired by the city's omnipresent bay windows.