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
Giants 400 | Sep 13, 2017
Top 75 retail construction firms
The Whiting-Turner Contracting Co., PCL Construction Enterprises, and Shawmut Design and Construction top BD+C’s ranking of the nation’s largest retail sector contractor and construction management firms, as reported in the 2017 Giants 300 Report.
Contractors | Sep 6, 2017
Following the money: G702 progress payment certifications
There is no single method of calculating progress payments, but the most common formula is the percentage of completion applied to the total contract price, less a retainage which is held by the owner until final acceptance of the project.
Multifamily Housing | Sep 5, 2017
Free WiFi, meeting rooms most popular business services amenities in multifamily developments
Complimentary, building-wide WiFi is more or less a given for marketing purposes in the multifamily arena.
Architects | Sep 1, 2017
5 reasons why AEC firms need to focus on employer branding
Not to be confused with the branding of your firm overall, your employer brand is defined by your reputation as a workplace.
Mixed-Use | Aug 30, 2017
A 50-acre waterfront redevelopment gets under way in Tampa
Nine architects, three interior designers, and nine contractors are involved in this $3 billion project.
Giants 400 | Aug 29, 2017
Top 110 healthcare construction firms
Turner, McCarthy, and Skanska top BD+C’s ranking of the nation’s largest healthcare sector contractor and construction management firms, as reported in the 2017 Giants 300 Report.
Green | Aug 24, 2017
Business case for WELL still developing after first generation office fitouts completed
The costs ranged from 50 cents to $4 per sf, according to a ULI report.
BD+C University Course | Aug 23, 2017
AIA course: New steel systems add strength and beauty
Advances in R&D are fostering new forms of structural and aesthetic steel.
Market Data | Aug 23, 2017
Architecture Billings Index growth moderates
“The July figures show the continuation of healthy trends in the construction sector of our economy,” said AIA Chief Economist, Kermit Baker.
Giants 400 | Aug 16, 2017
Turning R&D into practice
Charlie Pankow’s mandate was simple: Use research to create even better buildings.