Associated Builders and Contractors' Construction Backlog Indicator increased to 8.9 months in April from 8.7 in March, according to an ABC member survey conducted April 20 to May 3. The reading is 0.1 months higher than in April 2022.
After declining to a seven-month low in March, backlog rebounded in April due to strength in the infrastructure category. Regionally, backlog increased in the Northeast and West but fell in the South and middle states.
ABC’s Construction Confidence Index reading for sales and staffing moved higher in April, while the readings for profit margins inched lower. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Based on ABC member sentiment, one would not be able to discern that interest rates are high, the nation’s banking sector is in tumult, politicians are arguing over the nation’s debt limit and recession fears remain pervasive,” said ABC Chief Economist Anirban Basu. “Despite many headwinds and an active news cycle, contractors continue to express confidence in the near term.
“Still, there is some evidence of a shift,” said Basu. “With credit conditions tightening, expectations are that private construction is poised for weaker times ahead. Nonetheless, backlog expanded in April, as infrastructure contractors began to take on more public works projects. Moreover, despite rapidly rising compensation costs, more ABC contractors expect profit margins to expand as opposed to recede over the next six months, evidence of sufficiently strong demand for construction services to support pricing power.”
Related Stories
| May 11, 2012
Chapter 9 The Key to Commissioning That Works? It Never Stops
Why commissioning for existing and renovated buildings needs to be continuous to be effective.
| May 11, 2012
Chapter 8 High-Performance Reconstruction and Historic Preservation: Conflict and Opportunity
What historic preservationists and energy-performance advocates can learn from each other.
| May 11, 2012
VFA to acquire Altus Group's Capital Planning division
Strategic move strengthens VFA's facilities capital planning market osition in North America.
| May 11, 2012
Betz promoted to senior vice president for McCarthy’s San Diego Office
He will oversee client relations, estimating, office operations and personnel as well as integration of the company’s scheduling, safety and contracts departments.
| May 11, 2012
CRSI appoints Brace chairman
Stevens also elected to board of directors and vice-chair.
| May 11, 2012
Dempster named to AIA College of Fellows
Altoon Partners’ technical and construction services leader honored for his contributions.
| May 11, 2012
AIA launches education and training portal
New portal to host Contract Documents training, education resources in one convenient place.
| May 10, 2012
Chapter 7 When Modern Becomes Historic: Preserving the Modernist Building Envelope
This AIA CES Discovery course explores the special reconstruction questions posed by Modern-era buildings.
| May 10, 2012
Chapter 6 Energy Codes + Reconstructed Buildings: 2012 and Beyond
Our experts analyze the next generation of energy and green building codes and how they impact reconstruction.
| May 10, 2012
Chapter 5 LEED-EB and Green Globes CIEB: Rating Sustainable Reconstruction
Certification for existing buildings under these two rating programs has overtaken that for new construction.