Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 9.3 months in July, according to an ABC member survey conducted July 20 to Aug. 4. The reading is up by 0.6 months since July 2022.
The South remains the region with the highest level of backlog, despite being the only region with lower backlog on a year-ago basis. Backlog gains in July were concentrated in the commercial and institutional category.
“Nonresidential construction backlog continues to expand, which is precisely what contractors had predicted six months ago," said ABC Chief Economist Anirban Basu. "For many months, contractors have been signaling an expectation that demand for their services would continue to expand despite high and rising interest rates and a spate of regional bank failures.
“That said, there are some surprises in the data,” said Basu. “Backlog declined in both the infrastructure and heavy industry categories, possibly because the current administration is striving to reserve many large-scale projects for unionized firms. ABC members are largely nonunion, and therefore may be locked out of a meaningful proportion of significant opportunities. Diminished competition for such projects would tend to drive up construction service delivery charges, much of which are financed by American taxpayers."
ABC’s Construction Confidence Index reading for profit margins and staffing levels moved higher in July, while the reading for sales fell slightly. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
Related Stories
Contractors | May 3, 2016
ABC: Nonresidential construction spending slips in March
Spending is up 8.3% on a year-over-year basis. Half of the 16 nonresidential construction subsectors experienced monthly spending growth last month, while 12 are up on a year-ago basis.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Contractors | Apr 29, 2016
OSHA issues advisory to protect workers from Zika virus
Construction industry workers considered at high risk.
Government Buildings | Apr 22, 2016
Public-private partnership used to fund Long Beach Civic Center Project
Arup served as a lead advisor and oversaw financial, commercial, real estate, design, engineering, and cost consulting.
Contractors | Apr 21, 2016
Dewalt introduces rugged construction smartphone
The Android-powered device is waterproof, dustproof, weatherproof, and can withstand drops up to six feet.
Building Tech | Apr 12, 2016
Should we be worried about a tech slowdown?
Is the U.S. in an innovative funk, or is this just the calm before the storm?
Green | Apr 4, 2016
AIA report analyzes 20 years of the best green projects
"Lessons from the Leading Edge" is a study of the 200 Committee on the Environment (COTE) Top Ten Award winning projects since 1997.
Market Data | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
Codes and Standards | Mar 25, 2016
OSHA finalizes new silica dust regulations
Construction industry has until June 2017 to comply.