Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Backlog in the infrastructure category increased for the third straight month and is now at the highest level in nearly two years. On a regional basis, the South remains the region with the highest backlog, despite being the only region in which backlog declined in June.
“Backlog once again remained stable in June despite tight credit conditions and high interest rates,” said ABC Chief Economist Anirban Basu. “While those risk factors drove a decline in all three Construction Confidence Index series, contractors continue to signal an expectation that sales, profit margins and staffing will expand over the second half of 2023.
ABC’s Construction Confidence Index reading for sales, profit margins and staffing levels moved lower in June. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Many aspects of the economy, including consumer spending and the labor market, held up better than expected in the second quarter,” said Basu. “That bodes well for economic growth over the summer, but also suggests that the Federal Reserve may raise rates higher and keep them there longer in their ongoing efforts to suppress inflation. All else equal, that will reduce construction activity in the quarters to come.”
Related Stories
Urban Planning | Dec 15, 2021
EV is the bridge to transit’s AV revolution—and now is the time to start building it
Thinking holistically about a technology-enabled customer experience will make transit a mode of choice for more people.
Sports and Recreational Facilities | Dec 15, 2021
Trends in sports stadium construction, with Turner Construction's Dewey Newton
Turner Construction's Dewey Newton discusses trends in sports stadium renovation and construction with BD+C's John Caulfield. Newton is a Senior Vice President who heads up Turner Construction’s Sports Group.
Healthcare Facilities | Dec 15, 2021
COVID-19 has altered the speed and design of healthcare projects, perhaps irrevocably
Healthcare clients want their projects up and running quicker, a task made more complicated by the shortage of skilled labor in many markets.
Healthcare Facilities | Dec 15, 2021
MEP design considerations for rural hospitals
Rural hospitals present unique opportunities and challenges for healthcare facility operators. Oftentimes, the infrastructure and building systems have not been updated for years and require significant improvements in order to meet today’s modern medical demands. Additionally, as these smaller, more remote hospitals are acquired by larger regional and national healthcare systems, the first step by new ownership is often to update and rehabilitate the building. But how can this be done thoughtfully, economically, and efficiently in ways that allow the engineering and facility staff to adapt to the changes? And how can the updates accurately reflect the specific needs of rural communities and the afflictions with which these areas most commonly face?
Giants 400 | Dec 5, 2021
2021 Justice Facility Sector Giants: Top architecture, engineering, and construction firms in the U.S. justice facility/public safety sector
Turner Construction, DLR Group, AECOM, and Stantec top BD+C's rankings of the nation's largest architecture, engineering, and construction firms for justice facility/public safety buildings work, including correctional facilities, fire stations, jails, police stations, and prisons, as reported in the 2021 Giants 400 Report.
Giants 400 | Dec 3, 2021
2021 Hotel Sector Giants: Top architecture, engineering, and construction firms in the U.S. hospitality sector
Gensler, Jacobs, Suffolk Construction, and WATG top BD+C's rankings of the nation's largest hotel sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 20, 2021
2021 Parking Structure Giants: Top architecture, engineering, and construction firms in the U.S. parking structure sector
PGAL, PCL Construction, and Wiss, Janney, Elstner Associates top BD+C's rankings of the nation's largest parking structure sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Giants 400 | Nov 20, 2021
Top 10 Integrated Project Delivery (IPD) Construction Firms for 2021
Gilbane, BartonMalow, Whiting-Turner, and Hensel Phelps head the rankings of the nation's largest integrated project delivery (IPD) construction firms for buildings construction work, according to BD+C's 2021 Giants 400 Report.
Giants 400 | Nov 20, 2021
Top 100 Design-Build Construction Firms for 2021
Clayco, Hensel Phelps, ARCO Construction Companies, Swinerton, and Ryan Companies US top the rankings of the nation's largest design-build construction firms for buildings construction work, according to BD+C's 2021 Giants 400 Report.
Giants 400 | Nov 19, 2021
2021 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
Gensler, AECOM, Buro Happold, and Arup top BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.