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 ABCâs 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.
ABCâs 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.
âDespite 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,â said ABC Chief Economist Anirban Basu. âGiven 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 âno landing,â meaning that economic growth will continue despite rising interest rates.
âHowever, the incredibly strong January jobs report makes it more likely that the Federal Reserve will maintain higher borrowing costs for a longer period,â said Basu. âEventually, 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.â
Related Stories
| Jan 29, 2014
Hotel, retail, recreation sectors to lead growth in 2014
AIA's Consensus Construction Forecast, a survey of the nationâs leading construction forecasters, is projecting that spending will see a 5.8% increase in 2014, led by the hotel, retail, and amusement/recreation sectors.Â
| Jan 29, 2014
Notre Dame to expand football stadium in largest project in school history
The $400 million Campus Crossroads Project will add more than 750,000 sf of academic, student life, and athletic space in three new buildings attached to the school's iconic football stadium.Â
| Jan 28, 2014
White Paper: How metal buildings deliver long-term value to schools
A new white paper from Star Building Systems outlines the benefits of metal buildings for public and private school building projects.
| Jan 28, 2014
First Look: BIG's Honeycomb building for Bahamas resort [slideshow]
BIG + HKS + MDA have unveiled the design for the new Honeycomb building and adjacent plaza in The Bahamas â a 175,000-sf residential facility with a private pool on each balcony.
| Jan 28, 2014
2014 predictions for skyscraper construction: More twisting towers, mega-tall projects, and 'superslim' designs
Experts from the Council on Tall Buildings and Urban Habitat release their 2014 construction forecast for the worldwide high-rise industry.Â
| Jan 28, 2014
16 awe-inspiring interior designs from around the world [slideshow]
The International Interior Design Association released the winners of its 4th Annual Global Excellence Awards. Here's a recap of the winning projects.
| Jan 28, 2014
Big Ten Conference opens swanky HQ and museum [slideshow]
The new mixed-use headquarters includes a museum, broadcast studios, conference facilities, office spaces, and, oh yeah, a Brazilian steakhouse.
| Jan 27, 2014
A climber's dream: Rock climbing hall planned near Iran's highest peak
Forget the rock climbing wall. A developer in Iran is building a rock climbing hall. That's right, an entire building dedicated to the sport, with more than 48,000 sf of program space.Â
| Jan 24, 2014
First look: Foster + Partners' new home for Yale School of Management [slideshow]
Edward P. Evans Hall, the new home of the Yale School of Management, has opened for business. The 242,000-sf facility was designed by Foster + Partners, with Gruzen Samton as architect of record.Â
| Jan 24, 2014
Reed Expansion Index predicts widespread economic improvement for the year
Reed's December Expansion Index stood at 1.48, indicating overall construction in the United States is expected to grow over the next 12 months.