Associated Builders and Contractors reported today that its Construction Backlog Indicator declined to 8.7 months in March, according to an ABC member survey conducted March 20 to April 3. The reading is 0.4 months higher than in March 2022.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for March. View the historic Construction Backlog Indicator and Construction Confidence Index data series.
Backlog slipped in March and is now at its lowest level since August 2022. Backlog is down on a monthly basis in every region except for the South, which continues to be associated with elevated levels of current and future construction activity.
ABC’s Construction Confidence Index reading for sales inched higher in March, while the readings for profit margins and staffing levels fell. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“The deceleration in nonresidential construction activity may have started,” said ABC Chief Economist Anirban Basu. “With widespread fears of recession, credit conditions tightening and more decision-makers turning their attention to cost containment, new construction work may be more difficult for contractors to line up.
“While the confidence and backlog data weakened in March, they indicate a slowing of activity rather than a shift into reverse,” said Basu. “There is a widely held view that financial conditions are tightening in the aftermath of the failures of Silicon Valley Bank and Signature Bank. To the extent that this is true, one could anticipate further slowing and less industry confidence during the months ahead.”
Related Stories
Sponsored | BD+C University Course | Apr 19, 2022
Multi-story building systems and selection criteria
This course outlines the attributes, functions, benefits, limits, and acoustic qualities of composite deck slabs. It reviews the three primary types of composite systems that represent the full range of long-span composite floor systems and examines the criteria for their selection, design, and engineering.
Building Team | Apr 18, 2022
Shive-Hattery Acquires WSM Architects
Shive-Hattery announces that it has acquired WSM Architects, Inc., a 13-person architecture firm in Tucson, Arizona.
University Buildings | Apr 18, 2022
SmithGroup to design new Univ. of Colorado Denver engineering, design, computing building
The University of Colorado Denver selected SmithGroup to design a new engineering, design, and computing building that will serve as anchor of new downtown innovation district.
Building Team | Apr 15, 2022
Frank Gehry to design his largest building yet for his hometown of Toronto
Famed architect Frank Gehry will design his largest building to date for his hometown of Toronto, Canada.
Healthcare Facilities | Apr 14, 2022
Healthcare construction veteran creates next-level IPD process for hospital projects
Can integrated project delivery work without incentives for building team members? Denton Wilson thinks so.
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
High-rise Construction | Apr 14, 2022
Seattle’s high-rise convention center nears completion
The new Washington State Convention Center Summit Building—billed as the first high-rise convention center in North America—is on track to complete most of its construction later this year.
Building Team | Apr 14, 2022
TLC Engineering Solutions, Inc. acquires Moye I.T. Consulting, LLC
TLC Engineering Solutions, Inc. (TLC) is excited to announce that Moye I.T. Consulting, LLC (Moye Consulting) has joined the TLC team, expanding the breadth of its IT and Technology capabilities, as well as its national portfolio.
Wood | Apr 13, 2022
Mass timber: Multifamily’s next big building system
Mass timber construction experts offer advice on how to use prefabricated wood systems to help you reach for the heights with your next apartment or condominium project.
