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
| Jun 18, 2014
Largest Passive House structure in the U.S. to be built in Oregon
Orchards at Orenco, a 57-unit affordable housing complex in Hillsboro, Oregon, is the first of a three-phase, three-building complex.
| Jun 18, 2014
SOM's twisting tower wins design competition for Sweden's tallest skyscraper
The skyscraper, which will reach 230 meters and is named Polstjärnan, or "The Pole Star," is to be built in Gothenburg, Sweden.
| Jun 18, 2014
Study shows walkable urbanism has positive economic impact
Walkable communities have a higher GDP, greater wealth, and higher percentages of college grads, according to a new study by George Washington University.
| Jun 18, 2014
Arup uses 3D printing to fabricate one-of-a-kind structural steel components
The firm's research shows that 3D printing has the potential to reduce costs, cut waste, and slash the carbon footprint of the construction sector.
| Jun 17, 2014
Suffolk names Jeffrey Gouveia as President, Southeast Region
Exec with eight years of Florida experience will head regional team.
| Jun 17, 2014
Must see: If music were architecture in 27 illustrations
From Miles Davis to Björk to Manu Chao to Bach, Babina visualizes how these sounds will look like if they were visible in the form of architecture.
| Jun 17, 2014
Nation's largest Thai Buddhist temple opens near Boston
The $60 million facility built in honor of King Rama IX of Thailand is the largest Thai Buddhist temple outside of Thailand.
| Jun 17, 2014
U.S. Census report examines why Americans move
According to the U.S. Census Bureau, 35.9 million people moved between 2012 and 2013, meaning that 11.7% of the U.S. population moved in one year. The report seeks to examine why.
| Jun 17, 2014
World's tallest pair of towers to serve as 'environmental catalyst' for China
The Phoenix Towers are expected to reach 1 km, the same height as Adrian Smith and Gordon Gill's Kingdom Tower, but would set a record for multiple towers in one development.