Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 9.2 months in February, according to an ABC member survey conducted Feb. 20 to March 6. The reading is 1.2 months higher than in February 2022.
Backlog rebounded in February and for the past four months has hovered around highs not seen since the start of the pandemic. The Southern region continues to post the highest backlog of any region and, as of February, has had at least 11 months of backlog in four of the previous five months.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for February. View the historic Construction Backlog Indicator and Construction Confidence Index data series.
ABC’s Construction Confidence Index reading for sales, profit margins and staffing levels increased in February. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Despite a gloomy economic forecast and extraordinarily elevated borrowing costs, contractor backlog and confidence continue to rise,” said ABC Chief Economist Anirban Basu. “This mirrors the broader economy, which has thus far proved resilient in the face of rising interest rates. While economic strength, particularly regarding labor demand, is surprising, interest rate increases typically take 12 to 18 months to affect the broader economy, and the first interest rate increase occurred in March 2022.
“While backlog remains at a historically elevated level, borrowing costs will continue to rise during the next several months, and contractors continue to struggle in the face of skilled labor shortages,” said Basu. “If economic momentum fades this year, as a majority of forecasters continue to predict, then backlog and confidence may decline, especially for contractors working predominantly on privately financed projects.”
Related Stories
Giants 400 | Dec 3, 2020
2020 Healthcare Sector Giants: Top architecture, engineering, and construction firms in the U.S. healthcare facilities sector
HDR, Jacobs, and Turner top BD+C's rankings of the nation's largest healthcare facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Government Sector Giants: Top architecture, engineering, and construction firms in the U.S. government buildings sector
HNTB, Jacobs, and Turner top BD+C's rankings of the nation's largest government sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 3, 2020
2020 Cultural Facilities Giants: Top architecture, engineering, and construction firms in the U.S. cultural facilities sector
AECOM, Arup, and Populous head BD+C's rankings of the nation's largest cultural facilities sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 Retail Giants: Top architecture, engineering, and construction firms in the U.S. retail building sector
Gensler, Jacobs, and PCL Construction top BD+C's rankings of the nation's largest retail sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 University Giants: Top architecture, engineering, and construction firms in the higher education sector
Gensler, AECOM, and Turner Construction top BD+C's rankings of the nation's largest university sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 Multifamily Sector Giants: Top architecture, engineering, and construction firms in the U.S. multifamily building sector
Clark Group, Humphreys & Partners Architects, and Kimley-Horn head BD+C's rankings of the nation's largest multifamily building sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Dec 2, 2020
2020 Airport Sector Giants: Top architecture, engineering, and construction firms in the U.S. airport facilities sector
AECOM, Hensel Phelps, and PGAL top BD+C's rankings of the nation's largest airport sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Contractors | Dec 1, 2020
Abbott Construction to join the STO Building Group
Merger will expand both firms’ geographic reach and services.
Giants 400 | Nov 29, 2020
Top 85 Construction Management + Project Management Firms for 2020
Jacobs, CBRE, VCC, and JLL top the rankings of the nation's largest construction management (as agent) and program/project management firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 135 Contractors for 2020
Turner, Whiting-Turner, and STO Building Group head the rankings of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.