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
Museums | Nov 5, 2020
The Weekly show: Designing cannabis facilities, Bob Borson's Life of an Architect, museum design
BD+C editors speak with experts from Cooper Robertson, Life of an Architect, and MJ12 Design Studio on the November 5 episode of "The Weekly." The episode is available for viewing on demand.
Multifamily Housing | Oct 30, 2020
The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update
BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.
AEC Tech | Oct 28, 2020
Meet Jaibot, Hilti's new construction robot
The semi-autonomous robot is designed to assist MEP contractors with ceiling-drilling applications.
Hotel Facilities | Oct 27, 2020
Hotel construction pipeline dips 7% in Q3 2020
Hospitality developers continue to closely monitor the impact the coronavirus will have on travel demand, according to Lodging Econometrics.
Data Centers | Oct 26, 2020
Speed to market is biggest obstacle for burgeoning data center construction sector
Hyperscale and edge computing are driving growth in data center and mission critical facilities construction.
Adaptive Reuse | Oct 26, 2020
Mall property redevelopments could result in dramatic property value drops
Retail conversions to fulfillment centers, apartments, schools, or medical offices could cut values 60% to 90%.
Architects | Oct 14, 2020
The Weekly Show: AI for building facade inspections; designing a world-class architecture firm
The October 15 episode of BD+C's "The Weekly" is available for viewing on demand.
Contractors | Oct 9, 2020
New Consigli poll tracks subs’ material and labor pricing risks
Most trades confident they can find workers to hire to meet demand.
Coronavirus | Oct 8, 2020
The Weekly show: Statue of Liberty Museum, emotional learning in K-12, LA's climate change vulnerability
The October 8 episode of BD+C's "The Weekly" is available for viewing on demand.
Smart Buildings | Oct 1, 2020
Smart buildings stand on good data
The coming disruption of owning and operating a building and how to stay ahead through BIM.