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
| Sep 3, 2014
WSP to acquire Parsons Brinckerhoff in $1.35 billion deal
The deal, which has been approved by the boards of WSP and Balfour Beatty, has an enterprise value of $1.243 billion, plus another $110 million in cash retained by PB.
| Sep 3, 2014
New designation launched to streamline LEED review process
The LEED Proven Provider designation is designed to minimize the need for additional work during the project review process.
| Sep 2, 2014
Melbourne's tallest residential tower will have 'optically transformative façade'
Plans for Melbourne's tallest residential tower have been released by Elenberg Fraser Architects. Using an optically transformative façade and botanical aesthetic, the project seeks to change the landscape of Australia's Victoria state.
| Sep 1, 2014
Ranked: Top federal government sector AEC firms [2014 Giants 300 Report]
Clark Group, Fluor, and HOK top BD+C's rankings of the nation's largest federal government design and construction firms, as reported in the 2014 Giants 300 Report.
| Aug 28, 2014
Arthur Platt and Julie Engh to lead AIANY architectural boat tour at BD+C Under40 Leadership Summit
The tour, which will circumnavigate Manhattan, will provide U40 Summit attendees with information about the history and architectural details of numerous buildings visible from the 1920s-era yacht.
| Aug 27, 2014
Turkish government orders demolition of residential towers in Istanbul
Citing negative effects to a world heritage site, the Turkish central government has ruled that the recently completed OnaltiDokuz Residence towers must be demolished.
| Aug 26, 2014
Ranked: Top industrial sector AEC firms [2014 Giants 300 Report]
Stantec, Jacobs, and Turner top BD+C's rankings of the nation's largest industrial sector design and construction firms, as reported in the 2014 Giants 300 Report.
| Aug 26, 2014
High-rise concept uses 'sky street' to link towers [slideshow]
The design for a new complex in Shenzhen’s bay area consists of highly reflective glass towers, expansive garden space, and a horizontal glass structure that connects the buildings.
| Aug 25, 2014
Ranked: Top cultural facility sector AEC firms [2014 Giants 300 Report]
Arup, Gensler, and Turner head BD+C's rankings of design and construction firms with the most revenue from cultural facility projects, as reported in the 2014 Giants 300 Report.
| Aug 25, 2014
'Vanity space' makes up large percentage of world's tallest buildings [infographic]
Large portions of some skyscrapers are useless space used to artificially enhance their height, according to the Council on Tall Buildings and Urban Habitat.