Associated Builders and Contractors reports today that its Construction Backlog Indicator declined 0.2 months to 9.0 in January, according to an ABC member survey conducted Jan. 20 to Feb. 3. The reading is 1.0 month higher than in January 2022.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for January. View the historical Construction Backlog Indicator and Construction Confidence Index data series.
Despite the decline in January, backlog remains elevated by historical standards and is 0.1 months higher than in February 2020, the month before the COVID-19 pandemic began to impact the economy.
ABC’s Construction Confidence Index reading for sales, profit margins and staffing levels increased in January. All three readings remain above the threshold of 50, indicating expectations of growth over the next six months.
“Despite extremely elevated borrowing costs, worker shortages and a generally downcast economic outlook, contractor confidence rebounded in January to a level not seen since the first half of 2022,” said ABC Chief Economist Anirban Basu. “Given the recent employment report, the U.S. economy continues to fend off recession. Some economists have concluded that rather than a hard or soft landing, the U.S. economy is headed for ‘no landing,’ meaning that economic growth will continue despite rising interest rates.
“However, the incredibly strong January jobs report makes it more likely that the Federal Reserve will maintain higher borrowing costs for a longer period,” said Basu. “Eventually, that could cause the economic expansion to unravel, perhaps later this year. That could set the stage for diminished backlog and less confidence for contractors that specialize in privately financed projects as 2024 approaches.”
Related Stories
Legislation | Mar 28, 2022
LEED Platinum office tower faces millions in fines due to New York’s Local Law 97
One Bryant Park, also known as the Bank of America Tower, in Manhattan faces an estimated $2.4 million in annual fines when New York City’s York’s Local Law 97 goes into effect.
Healthcare Facilities | Mar 25, 2022
Health group converts bank building to drive-thru clinic
Edward-Elmhurst Health and JTS Architects had to get creative when turning an American Chartered Bank into a drive-thru clinic for outpatient testing and vaccinations.
Higher Education | Mar 24, 2022
Higher education sector sees 19 percent reduction in facilities investments
Colleges and universities face a growing backlog of capital needs and funding shortfalls, according to Gordian’s 2022 State of Facilities in Higher Education report.
Contractors | Mar 23, 2022
Hiring Construction Workers in a Frantic Post-Covid Job Market
McCarthy Building Companies' Director of Talent Acquisition, Ben Craigs, discusses the construction giant's recruitment and training strategies in a hyper-competitive market. Craigs sits down with BD+C Senior Editor John Caulfield.
Architects | Mar 16, 2022
James Hoban: Designer and builder of the White House
Stewart D. McLaurin, President of the White House Historical Association, chats with BD+C Executive Editor Robert Cassidy about James Hoban, the Irish draftsman and builder who convinced George Washington to let him design and build the White House.
AEC Tech Innovation | Mar 9, 2022
Meet Emerge: WSP USA's new AEC tech incubator
Pooja Jain, WSP’s VP-Strategic Innovation, discusses the pilot programs her firm’s new incubator, Emerge, has initiated with four tech startup companies. Jain speaks with BD+C's John Caulfield about the four AEC tech firms to join Cohort 1 of the firm’s incubator.
Multifamily Housing | Feb 24, 2022
First new, mixed-use high-rise in Detroit’s central business district in nearly 30 years opens
City Club Apartments completed two multifamily projects in 2021 in downtown Detroit including the first new, mixed-use high-rise in Detroit’s central business district in nearly 30 years.
Office Buildings | Feb 23, 2022
The Beam on Farmer, Arizona’s first mass timber, multi-story office building tops out
The Beam on Farmer, Arizona’s first mass timber, multi-story office building, topped out on Feb. 10, 2022.
Codes and Standards | Feb 21, 2022
More bad news on sea level rise for U.S. coastal areas
A new government report predicts sea levels in the U.S. of 10 to 12 inches higher by 2050, with some major cities on the East and Gulf coasts experiencing damaging floods even on sunny days.
Wood | Feb 18, 2022
$2 million mass timber design competition: Building to Net-Zero Carbon (entries due March 30!)
To promote construction of tall mass timber buildings in the U.S., the Softwood Lumber Board (SLB) and USDA Forest Service (USDA) have joined forces on a competition to showcase mass timber’s application, commercial viability, and role as a natural climate solution.
