Associated Builders and Contractors reported today that its Construction Backlog Indicator inched up to 8.5 months in November from 8.4 months in October, according to an ABC member survey conducted Nov. 20 to Dec. 4. The reading is down 0.7 months from November 2022.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for November. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Despite the monthly increase, backlog is currently 0.8 months lower than at July’s cyclical peak. The sharpest declines over that span occurred among contractors with more than $100 million in annual revenues, who collectively reported fewer than 10 months of backlog in November for the first time since the second quarter of 2018.
ABC’s Construction Confidence Index readings for sales and staffing levels increased in November, while the reading for profit margins fell. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“A growing number of contractors are reporting declines in backlog,” said ABC Chief Economist Anirban Basu. “The interest rate hikes implemented by the Federal Reserve appear to be making more of a mark on the economy. Not only has the cost of capital risen over the past 20+ months, but credit conditions are also tightening, rendering project financing even more challenging.
“The good news is that certain interest rates have begun to fall in anticipation of Federal Reserve rate cuts next year, perhaps as early as the first quarter,” said Basu. “Still, 2024 is poised to be weaker from a construction demand perspective for many firms, especially those that depend heavily on private developers. Those operating in public construction and/or industrial segments should meet with less resistance on average.”
Related Stories
| May 24, 2018
Accelerate Live! talk: The rise of multi-user virtual reality
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), two of CannonDesign's tech leaders present their early findings from pilot testing multi-user VR technology for AEC project coordination.
| May 24, 2018
Accelerate Live! talk: The next frontier of post-occupancy evaluations
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), ZGF Architects’ Chris Chatto outlines methods for conducting meaningful, holistic evaluations from design to occupancy.
| May 24, 2018
Accelerate Live! talk: Security and the built environment: Insights from an embassy designer
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), embassy designer Tom Jacobs explores ways that provide the needed protection while keeping intact the representational and inspirational qualities of a design.
Contractors | May 5, 2018
Manual data entry still hampers jobsite construction
A new survey also finds managers and executives collecting and managing their work information on multiple platforms.
Contractors | May 3, 2018
The U.S. construction pipeline showed healthy growth in the first quarter
We expect the Pipeline to continue its modest growth through 2018.
Contractors | Apr 30, 2018
Following—and forecasting—the money: Financial modeling for project managers
To wait until there’s a problem affecting design and construction before consulting with a PM wastes valuable time when a project is at its most vulnerable point.
Contractors | Apr 26, 2018
At Boston University’s dental school, ‘under construction’ won’t mean ‘closed for business’
A major renovation and addition are scheduled to minimize operational disruption.
Contractors | Apr 20, 2018
Construction employment rises in 38 states and D.C. from March 2017 to March 2018
California and West Virginia have biggest job gains for the year, North Dakota has largest decline; Texas and Alaska have largest monthly pickup, New York and Hawaii have largest monthly drops.
Contractors | Apr 13, 2018
Clayco to open new office in Greenville, South Carolina
The office will be located in the One building at 2 West Washington Street.
Contractors | Apr 9, 2018
Tech Report 5.0: Smart(er) Jobsites
Real-time construction analysis, just-in-time materials delivery, digital production planning systems—these are just a few of the novel approaches construction firms are implementing to take control of their jobsites.
