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
| Dec 30, 2013
Calatrava facing legal action from his home town over crumbling cultural complex
Officials with the city of Valencia, Spain, are blaming Santiago Calatrava for the rapid deterioration of buildings within its City of Arts and Sciences complex.
| Dec 24, 2013
First Look: Calatrava's Sharq Crossing in Doha, Qatar [video]
The government of Qatar has released details of Sharq Crossing, a massive infrastructure project designed by Spanish architect Santiago Calatrava.
| Dec 23, 2013
MBI commends start of module setting at B2, world's tallest modular building
The first modules have been set at B2 residential tower at Atlantic Yards in New York, set to become the tallest modular building in the world.
| Dec 23, 2013
First Look: KPF's dual-tower design for Ziraat Bank in Istanbul
Kohn Pedersen Fox Associates (KPF) is designing a new headquarters for Turkey’s largest and oldest financial institution, Ziraat Bank, in a modern, suburban district of Istanbul.
| Dec 20, 2013
Top healthcare sector trends for 2014 (and beyond)
Despite the lack of clarity regarding many elements of healthcare reform, there are several core tenets that will likely continue to drive transition within the healthcare industry.
| Dec 20, 2013
Must see for the holidays: Architects re-create iconic structures using gingerbread
Gensler, PBK, Page Sutherland Page, and Kirksey were among the firms to compete in the 5th Annual Gingerbread Build-Off.
| Dec 20, 2013
Can energy hogs still be considered efficient buildings? Yes, say engineers at Buro Happold
A new tool from the engineering firm Buro Happold takes into account both energy and economic performance of buildings for a true measure of efficiency.
| Dec 20, 2013
Ten spectacular contemporary churches [slideshow]
German building-information provider Emporis compiles a photographic tour of inspirational spaces.
| Dec 19, 2013
NRDC report relates green infrastructure investments to commercial property value [Infographic]
The Natural Resources Defense Council has released The Green Edge: How Commercial Property Investment in Green Infrastructure Creates Value -- a first-ever illustrative and well-documented report that helps demonstrate the value of green infrastructure. It draws from available published material to capture the multitude of tangible, monetizable non-water quality and water quality benefits that green infrastructure investments (trees, rain gardens, and porous pavement, rainwater harvesting cisterns, bioswales, etc.) can unlock for the commercial real estate sector, including commercial property owners and their tenants.
| Dec 19, 2013
Mastering the art of crowd control and visitor flow in interpretive facilities
To say that visitor facility planning and design is challenging is an understatement. There are many factors that determine the success of a facility. Unfortunately, visitor flow, the way people move and how the facility accommodates those movements, isn’t always specifically considered.
