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
| Sep 29, 2014
10 common deficiencies in aging healthcare facilities
VOA's Douglas King pinpoints the top issues that arise during healthcare facilities assessments, including missing fire/smoke dampers, out-of-place fire alarms, and poorly constructed doorways.
| Sep 29, 2014
Snøhetta releases final plan for terraced central library in Calgary
The competition-winning New Central Library is now in the final design stages, after two years of community engagement on the part of design firms Snøhetta and DIALOG.
| Sep 25, 2014
Jean Nouvel unveils plans for National Art Museum of China
Of the design, Nouvel describes it as inspired by the simplicity of “a single brush stroke.”
Sponsored | | Sep 25, 2014
Your business doesn’t always need to change
By now, the idea that organizations must adapt to maintain both relevance and market share is so ingrained that it’s been reduced to pithy sayings. But is constant adaptation always the best policy? SPONSORED CONTENT
| Sep 24, 2014
Must see: Semi-submerged hotel planned for Qatar's man-made island
Plans for a new hotel in the Persian Gulf are taking Dubai’s Palm Islands concept to a whole new level—underwater, that is.
| Sep 24, 2014
5 business lessons from a 43-year Star veteran
Mary Ed Cain was supposed to be born a boy. That was the first time she surprised everyone. The second time came on a daily basis during her 43-year career at Star Building Systems. SPONSORED CONTENT
| Sep 24, 2014
Architecture billings see continued strength, led by institutional sector
On the heels of recording its strongest pace of growth since 2007, there continues to be an increasing level of demand for design services signaled in the latest Architecture Billings Index.
| Sep 24, 2014
Frank Gehry's first building in Latin America will host grand opening on Oct. 2
Gehry's design for the Biomuseo, or Museum of Biodiversity, draws inspiration from the site's natural and cultural surroundings, including local Panamaian tin roofs.
| Sep 23, 2014
Third phase of New York’s High Line redevelopment opens
The $35 million Phase 3, known as High Line at the Rail Yards, broke ground September 20, 2012, and officially opened to the public on September 21.
| Sep 23, 2014
Designing with Water: Report analyzes ways coastal cities can cope with flooding
The report contains 12 case studies of cities around the world that have applied advanced flood management techniques.
