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
| Jan 28, 2014
2014 predictions for skyscraper construction: More twisting towers, mega-tall projects, and 'superslim' designs
Experts from the Council on Tall Buildings and Urban Habitat release their 2014 construction forecast for the worldwide high-rise industry.
| Jan 28, 2014
16 awe-inspiring interior designs from around the world [slideshow]
The International Interior Design Association released the winners of its 4th Annual Global Excellence Awards. Here's a recap of the winning projects.
| Jan 28, 2014
Big Ten Conference opens swanky HQ and museum [slideshow]
The new mixed-use headquarters includes a museum, broadcast studios, conference facilities, office spaces, and, oh yeah, a Brazilian steakhouse.
| Jan 27, 2014
A climber's dream: Rock climbing hall planned near Iran's highest peak
Forget the rock climbing wall. A developer in Iran is building a rock climbing hall. That's right, an entire building dedicated to the sport, with more than 48,000 sf of program space.
| Jan 24, 2014
First look: Foster + Partners' new home for Yale School of Management [slideshow]
Edward P. Evans Hall, the new home of the Yale School of Management, has opened for business. The 242,000-sf facility was designed by Foster + Partners, with Gruzen Samton as architect of record.
| Jan 24, 2014
Reed Expansion Index predicts widespread economic improvement for the year
Reed's December Expansion Index stood at 1.48, indicating overall construction in the United States is expected to grow over the next 12 months.
| Jan 24, 2014
Urban Land Institute, Enterprise outline issues in rental housing shortage: Report
Bending the Cost Curve: Solutions to Expand the Supply of Affordable Rentals outlines factors that impede the development of affordable rental housing – causing the supply in many markets to fall far short of the demand.
| Jan 24, 2014
Structural concrete requirements under revision: ACI 318 standard
The American Concrete Institute (ACI), an organization whose mission is to develop and disseminate consensus-based knowledge on concrete and its uses, is finalizing a completely reorganized ACI 318-14: Building Code Requirements for Structural Concrete.
| Jan 23, 2014
SMPS Announces Call for Entries for 37th Annual Marketing Communications Awards Program
The Society for Marketing Professional Services (SMPS) is accepting entries for its 37th Annual Marketing Communications Awards (MCA) competition. The MCA program is the longest-standing, most prestigious awards program recognizing excellence in marketing communications by professional services firms in the design and building industry. The entry deadline is March 3, 2014. SMPS members and nonmembers are eligible to enter.
| Jan 23, 2014
Adrian Smith + Gordon Gill-designed Federation of Korean Industries tower opens in Seoul [slideshow]
The 50-story tower features a unique, angled building-integrated photovoltaic (BIPV) exterior designed to maximize the amount of energy collected.