Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in June, according to an ABC member survey conducted June 20 to July 3. The reading is down 0.5 months from June 2023.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for June. View the full Construction Backlog Indicator and Construction Confidence Index data series.
The entire decline in backlog observed over the past calendar year is attributable to the Middle States and Northeast. Backlog in the South and West regions was unchanged between June 2023 and June 2024.
ABC’s Construction Confidence Index readings for sales and staffing levels fell slightly in June, while the reading for profit margins improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog continues to hold up remarkably well despite high interest rates, inflation and emerging weakness in the broader economy," said ABC Chief Economist Anirban Basu. “While contractor confidence regarding the outlook for sales and staffing levels fell modestly in June, all three Construction Confidence Index components are higher than they were one year ago.
“The combination of slowing inflation and softening growth suggests that the Federal Reserve may begin to lower interest rates as soon as September,” said Basu. “That will buoy backlog as some of the softer construction segments, like office and commercial, benefit from lower borrowing costs and looser lending standards.”
Related Stories
Sponsored | Performing Arts Centers | Jan 17, 2024
Performance-based facilities for performing arts boost the bottom line
A look at design trends for “budget-wise” performing arts facilities reveals ways in which well-planned and well-built facilities help performers and audiences get the most out of the arts. This continuing education course is worth 1.0 AIA learning unit.
Affordable Housing | Jan 16, 2024
Construction kicks off on $237.9 million affordable housing project in Brooklyn, N.Y.
Construction recently began on an affordable housing project to create 328 units for low-income and formerly homeless populations in Brooklyn, N.Y.
Giants 400 | Jan 15, 2024
Top 90 Hospital Facility Construction Firms for 2023
Turner Construction, Brasfield & Gorrie, JE Dunn Construction, McCarthy Holdings, and STO Building Group top BD+C's ranking of the nation's largest hospital facility general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
Airports | Jan 15, 2024
How to keep airports functional during construction
Gensler's aviation experts share new ideas about how to make the airport construction process better moving forward.
Adaptive Reuse | Jan 12, 2024
Office-to-residential conversions put pressure on curbside management and parking
With many office and commercial buildings being converted to residential use, two important issues—curbside management and parking—are sometimes not given their due attention. Cities need to assess how vehicle storage, bike and bus lanes, and drop-off zones in front of buildings may need to change because of office-to-residential conversions.
MFPRO+ News | Jan 12, 2024
As demand rises for EV chargers at multifamily housing properties, options and incentives multiply
As electric vehicle sales continue to increase, more renters are looking for apartments that offer charging options.
Student Housing | Jan 12, 2024
UC Berkeley uses shipping containers to block protestors of student housing project
The University of California at Berkeley took the drastic step of erecting a wall of shipping containers to keep protestors out of a site of a planned student housing complex. The $312 million project would provide badly needed housing at the site of People’s Park.
Giants 400 | Jan 11, 2024
Top 20 Convention Center Construction Firms for 2023
Clark Group, PCL Construction Enterprises, AECOM, Hensel Phelps, and Gilbane Building Company top BD+C's ranking of the nation's largest convention center and event facility general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
AEC Tech | Jan 8, 2024
What's driving the surge of digital transformation in AEC today?
For centuries, the AEC industry has clung to traditional methods and legacy processes—seated patterns that have bred resistance to change. This has made the adoption of new technologies a slow and hesitant process.
Giants 400 | Jan 8, 2024
Top 60 Senior Living Facility Construction Firms for 2023
Whiting-Turner, Ryan Companies US, Weis Builders, Suffolk Construction, and W.E. O'Neil Construction top BD+C's ranking of the nation's largest senior living facility general contractors and construction management (CM) firms for 2023, as reported in the 2023 Giants 400 Report.
