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
Building Team Awards | Apr 9, 2015
IPD-driven fusion facility serves science and student life in Chicago
In dire need of modern science labs and a student union, North Park University built both—in the same building.
Building Team Awards | Apr 9, 2015
‘Prudent, not opulent’ sets the tone for this Catholic hospital
This Building Team stuck with a project for seven years to get a new hospital built for a faithful client.
Building Team Awards | Apr 9, 2015
9/11 museum triumphs over controversy
The Building Team for this highly visible project had much more than design, engineering, and construction problems to deal with.
Building Team Awards | Apr 7, 2015
Unique test facility will help make wind power more feasible
A new facility at Clemson University makes it possible to test the huge stresses that large-scale wind turbines must be able to withstand.
Cultural Facilities | Apr 6, 2015
Berkeley’s West Branch Library generates more energy than it uses
The 9,400-sf facility is California's first Net Zero Energy-certified building.
Codes and Standards | Apr 6, 2015
Industry groups petition for change order reform on federal projects
Nine design and construction associations ask for assurance that funds available for additional work.
BIM and Information Technology | Apr 3, 2015
French startup develops drone camera that overlays video with 3D images
The new drones can capture video and overlay the shot results with 3D images and augmented reality remotely.
Contractors | Apr 1, 2015
ABC: Nonresidential construction spending flat in February
The Associated Builders and Contractors forecasts a robust nonresidential construction spending recovery in 2015, despite an underwhelming start.
Office Buildings | Apr 1, 2015
IBM's supercomputer Watson finds new home in Manhattan's Silicon Alley
The new headquarters for the former Jeopardy champ was conceived as a showcase for Watson’s capabilities, and as an inspirational workspace for Millennials and idea generators of all ages.
Sponsored | Fire and Life Safety | Apr 1, 2015
Radiant Heat: The Invisible Killer
Where there’s smoke, there’s fire. Where there’s fire, there’s the deadly threat of radiant heat.
