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
Industrial Facilities | Sep 3, 2015
DATA CENTER SECTOR GIANTS: Fluor, Gensler, Holder Construction among top data center AEC firms
BD+C's rankings of the nation's largest data center sector design and construction firms, as reported in the 2015 Giants 300 Report
Airports | Aug 31, 2015
Surveys gauge users’ satisfaction with airports
Several surveys gauge passenger satisfaction with airports, as flyers and airlines weigh in on technology, security, and renovations.
Airports | Aug 31, 2015
Small and regional airports in a dogfight for survival
Small and regional airports are in a dogfight for survival. Airlines have either cut routes to non-hub markets, or don’t provide enough seating capacity to meet demand.
Airports | Aug 31, 2015
Airports expand rental car facilities to ease vehicular traffic at their terminals
AEC teams have found fertile ground in building or expanding consolidated rental car facilities, which are the No. 1 profit centers for most airports.
Airports | Aug 31, 2015
Experts discuss how airports can manage growth
In February 2015, engineering giant Arup conducted a “salon” in San Francisco on the future of aviation. This report provides an insight into their key findings.
Healthcare Facilities | Aug 28, 2015
Hospital construction/renovation guidelines promote sound control
The newly revised guidelines from the Facilities Guidelines Institute touch on six factors that affect a hospital’s soundscape.
Healthcare Facilities | Aug 28, 2015
7 (more) steps toward a quieter hospital
Every hospital has its own “culture” of loudness and quiet. Jacobs’ Chris Kay offers steps to a therapeutic auditory environment.
Healthcare Facilities | Aug 28, 2015
Shhh!!! 6 ways to keep the noise down in new and existing hospitals
There’s a ‘decibel war’ going on in the nation’s hospitals. Progressive Building Teams are leading the charge to give patients quieter healing environments.
Mixed-Use | Aug 26, 2015
Innovation districts + tech clusters: How the ‘open innovation’ era is revitalizing urban cores
In the race for highly coveted tech companies and startups, cities, institutions, and developers are teaming to form innovation hot pockets.
Contractors | Aug 19, 2015
FMI's Nonresidential Construction Index Report: Recovery continues despite slow down
The Q3 NRCI dropped to 63.6 from the previous reading of 64.9 in Q2, painting a mixed picture of the state of the nonresidential construction sector.