Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.
Backlog declined on a monthly basis for every company size except those contractors with greater than $100 million in annual revenues. On an annual basis, backlog is down for contractors of all sizes.
ABC’s Construction Confidence Index readings for profit margins and staffing levels fell slightly in May, while the reading for sales improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Over a year has passed since the Federal Reserve raised the target range of the federal funds rate above 5%," said ABC Chief Economist Anirban Basu. "Despite widespread expectations that rates will remain elevated through at least the end of the year, contractors remain confident about the future, with a majority of contractors expecting their sales and staffing levels to expand over the next six months.
“Although backlog has been lower in 2024 than it was during 2023, it has also been stable,” said Basu. “While significant spending activity in manufacturing and infrastructure-related segments has kept contractors busy, input cost escalation has reemerged in recent months. As a result, contractor confidence regarding profit margins has fallen to the lowest level since November 2023.”
Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for May. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Related Stories
Hospital Design Trends | Feb 14, 2024
Plans for a massive research hospital in Dallas anticipates need for child healthcare
Children’s Health and the UT Southwestern Medical Center have unveiled their plans for a new $5 billion pediatric health campus and research hospital on more than 33 acres within Dallas’ Southwestern Medical District.
Contractors | Feb 13, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of January 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.4 months in January, according to an ABC member survey conducted from Jan. 22 to Feb. 4. The reading is down 0.6 months from January 2023.
Codes | Feb 9, 2024
Illinois releases stretch energy code for building construction
Illinois is the latest jurisdiction to release a stretch energy code that provides standards for communities to mandate more efficient building construction. St. Louis, Mo., and a few states, including California, Colorado, and Massachusetts, currently have stretch codes in place.
Giants 400 | Feb 8, 2024
Top 10 Telecommunications Building Construction Firms for 2023
AECOM, LeChase Construction Services, Robins & Morton, and Salas O'Brien top BD+C's ranking of the nation's largest telecommunications building general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 20 Integrated Project Delivery (IPD) Construction Firms for 2023
Barton Malow, DPR Construction, Hensel Phelps, and Whiting-Turner top BD+C's ranking of the nation's largest integrated project delivery (IPD) construction firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 90 Design-Build Construction Firms for 2023
Hensel Phelps, Ryan Companies US, Gray Construction, Haskell, and Burns & McDonnell top BD+C's ranking of the nation's largest design-build construction firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 20 Public Library Construction Firms for 2023
Gilbane Building Company, Skanska USA, Manhattan Construction, McCownGordon Construction, and C.W. Driver Companies top BD+C's ranking of the nation's largest public library general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 30 Public Library Engineering Firms for 2023
KPFF Consulting Engineers, Tetra Tech High Performance Buildings Group, Thornton Tomasetti, WSP, and Dewberry top BD+C's ranking of the nation's largest public library engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 35 Performing Arts Center and Concert Venue Construction Firms for 2023
The Whiting-Turner Contracting Company, Holder Construction, McCarthy Holdings, Clark Group, and Gilbane Building Company top BD+C's ranking of the nation's largest performing arts center and concert venue general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Feb 8, 2024
Top 40 Museum Construction Firms for 2023
Turner Construction, Clark Group, Bancroft Construction, STO Building Group, and Alberici-Flintco top BD+C's ranking of the nation's largest museum and gallery general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.