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
| Dec 7, 2011
ACE Mentor Program receives Presidential Award for Excellence in Science, Math and Engineering Mentoring
Thornton Tomasetti founding principal Charles H. Thornton responsible for launching ACE.
| Dec 7, 2011
NSF International qualifies first wallcoverings distributor to the New American National Standard for Sustainable Wallcoverings
TRI-KES demonstrates leadership in environmental stewardship as the first distributor to earn qualification.
| Dec 7, 2011
DPR Foundation awards $590,000 to youth organizations
Grants will fund programs for disadvantaged kids across six states.
| Dec 7, 2011
Autodesk agrees to acquire Horizontal Systems
Acquisition extends and accelerates cloud-based BIM solutions for collaboration, data, and lifecycle management.
| Dec 7, 2011
ICS Builders and BKSK Architects complete St. Hilda’s House in Manhattan
The facility's design highlights the inherent link between environmental consciousness and religious reverence.
| Dec 6, 2011
Construction industry leaders gather for forum on diversity
Declared a “groundbreaking” event for the industry, Gilbane’s First Annual National Partners Council Forum addressed diversity and inclusion as well as building partnerships with minority, veteran, and women-owned businesses.
| Dec 6, 2011
Mortenson Construction completes Elk Wind Project in Iowa
By the end of 2011, Mortenson will have built 17 wind projects in the state generating a total of 1894 megawatts of renewable power.
| Dec 6, 2011
?ThyssenKrupp acquires Sterling Elevators Services
The acquisition of Sterling Elevator Services Corporation is the third acquisition completed by ThyssenKrupp Elevator AG in the last three months in North America.
| Dec 6, 2011
Vivenzio named vice president of building performance practice at Thornton Tomasetti’s New York Office
Vivenzio, a licensed architect in New York and New Jersey, has more than 28 years of experience in architectural project management, construction administration, building diagnostic services and forensic investigation.
| Dec 6, 2011
New office building features largest solar panel system in New Orleans
Woodward Design+Build celebrates grand opening of new green headquarters in Central City.
