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
| Jul 20, 2012
Office Report: Fitouts, renovations keep sector moving
BD+C's Giants 300 Top 25 AEC Firms in the Office sector.
| Jul 20, 2012
K-12 Schools Report: ‘A lot of pent-up need,’ with optimism for ’13
The Giants 300 Top 25 AEC Firms in the K-12 Schools Sector.
| Jul 20, 2012
Higher education market holding steady
But Giants 300 University AEC Firms aren’t expecting a flood of new work.
| Jul 20, 2012
3 important trends in hospital design that Healthcare Giants are watching closely
BD+C’s Giants 300 reveals top AEC firms in the healthcare sector.
| Jul 20, 2012
Global boom for hotels; for retail, not so much
The Giants 300 Top 10 Firms in the Hospitality and Retail sectors.
| Jul 20, 2012
Gensler, Stantec, Turner lead ‘green’ firms
The Top 10 AEC Firms in Green Buildings and LEED Accredited Staff.
| Jul 19, 2012
Renovation resurgence cuts across sectors
Giants 300 reconstruction sector firms ‘pumping fresh blood in tired spaces.’
| Jul 19, 2012
AEC firms ready to dive into public projects
But the size of the pool keeps shrinking for the Top 25 AEC firms in the Government Sector.
| Jul 19, 2012
BIM finally starting to pay off for AEC firms
In surveying Giants 300 firms about BIM, we went right for the jugular: Is BIM paying off—through cost savings, higher quality, or client satisfaction? Here’s what they told us.
