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
| Mar 14, 2013
Shawmut Design and Construction promotes Randy Shelly to VP of Hospitality
Shawmut Design and Construction, located at 560 Harrison Avenue in Boston, has announced the promotion of Randy Shelly to Vice President of the company’s Hospitality Group. Shelly will replace veteran Paul Doherty, who has accepted a new position within Shawmut.
| Mar 13, 2013
RSMeans cost comparisons: jails, courthouses, police stations, and post offices
The March 2013 report from RSMeans offers construction costs per square foot for four building types across 25 metro markets. Building types include: jails, courthouses, police stations, and post offices.
| Mar 12, 2013
'World's greenest' office building seeks tenants in Seattle
Superefficient Seattle office building is designed to meet the ambitious goals of the Living Building Challenge.
| Mar 6, 2013
Dual towers designed by SHoP create new affordable housing in NYC
With the construction of Hunters Point South, New York City will get its first large new housing development for middle-class families in more than 30 years. Related Companies is partnering with the nonprofit Phipps Houses in the project, designed by SHoP Architects with Ismael Leyva Architects.
| Feb 28, 2013
Videos reveal City 2.0 ideas from 2012 TED Prize winners
Thought leader TED has released eight new videos from winners of its 2012 TED Prize: the City 2.0. The prize went to 10 winners involved in urban issues, including education, safety, health, food, and public space.
| Feb 28, 2013
Novel multifamily solutions to be presented at New York Modular Construction Summit
The New York Modular Construction Summit will be co-hosted by the Modular Building Institute and Pratt Institute School of Architecture on May 16, 2013, in Brooklyn, N.Y.
| Feb 28, 2013
Greeening Silicon Valley: Samsung's new 1.1 million-sf HQ
Samsung Electronics' new 1.1 million sf San Jose campus will support at least 2,500 sales and R&D staff in the company's semiconductor and display businesses.
| Feb 28, 2013
Lend Lease builds world's tallest timber apartment building
Construction giant Lend Lease recently put the finishing touches on Forté, a 10-story apartment complex in Melbourne, Australia's Victoria Harbour that was built entirely with cross laminated timber (CTL) technology.
