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
| May 8, 2012
WDMA and AAMA release window, door & skylight market studies
Historic data for 2006 through 2011 and forecast data for 2012 through 2015 are included in the report.
| May 8, 2012
Study presents snapshot of domestic violence shelter services
Unique partnership of architects and domestic violence advocates brings new strategies for emergency housing.
| May 8, 2012
Gensler & J.C. Anderson team for pro bono high school project in Chicago
City Year representatives came to Gensler for their assistance in the transformation of the organization’s offices within Orr Academy High School, which also serve as an academic and social gathering space for students and corps members.
| May 8, 2012
Skanska USA hires Zamrowski as senior project manager
In his new role at Skanska, Zamrowski will serve as the day-to-day on-site contact for select Pennsylvania-based projects during all phases of construction.
| May 8, 2012
Morgan/Harbour completes three projects at Columbia Centre
Projects completed on behalf of property owner, White Oak Realty Partners, LLC, Pearlmark Realty Partners, LLC and Angelo Gordon & Co.
| May 7, 2012
4 more trends in higher-education facilities
Our series on college buildings continues with a look at new classroom designs, flexible space, collaboration areas, and the evolving role of the university library.
| May 7, 2012
Best AEC Firms: MHTN Architects nine decades of dedication to Utah
This 65-person design firm has served Salt Lake City and the state of Utah for the better part of 90 years.
| May 7, 2012
2012 BUILDING TEAM AWARDS: TD Ameritrade Park
The new stadium for the College World Series in Omaha combines big-league amenities within a traditional minor league atmosphere.
| May 7, 2012
2012 BUILDING TEAM AWARDS: Fort Belvoir Community Hospital
A new military hospital invokes evidence-based design to create a LEED-certified facility for the nation’s soldiers and their families.
