Following an intense winter season, the Associated Builders and Contractors' Construction Backlog Indicator (CBI) revealed a 3.2% decline during the first quarter of 2015.
According to ABC, construction firms across the country reported a revenue-weighted average CBI of 8.4 months, 0.3 months below the final quarter of 2014.
The Northeast saw its backlog decline by 10.2%, a change of 1.04 months from the fourth quarter of last year. The Middle States reported a 0.7% decline to 0.05 months in construction backlog and the West experienced a 25.3% drop or 1.88 months. The South was the only region to report an increase in construction backlog as it rose 5.9% or 0.55 months.
"Weather and a myriad of other factors always make the first quarter CBI difficult to interpret," said ABC Chief Economist Anirban Basu. "A brutal winter may have postponed project-related work, including the signing of contracts. The first quarters of 2012 and 2014 also experienced CBI declines that effectively were reversed during the ensuing second quarters."
Additionally, sharp reductions in oilfield investment affected companies in the Middle States while the West Coast port slowdown impacted firms on the western side of the country. However, the backlog should re-establish an upward trend as the year's warmer months approach and ports return to normal.
Despite the backlog decline, continued job growth, low fuel prices, and wage gains are expected to lead to an increase in consumer spending.
Related Stories
| Apr 10, 2013
6 funding sources for charter school construction
Competition for grants, loans, and bond financing among charter schools is heating up, so make your clients aware of these potential sources.
| Apr 9, 2013
FMI predicts 8% rise in construction put in place for 2013
FMI, the largest provider of management consulting and investment banking services to the engineering and construction industry released today its Q1-2013 Construction Outlook. The forecast for total construction-put-in-place for 2013 continues to show an increase of 8% over 2012 levels.
| Apr 8, 2013
Most daylight harvesting schemes fall short of performance goals, says study
Analysis of daylighting control systems in 20 office and public spaces shows that while the automatic daylighting harvesting schemes are helping to reduce lighting energy, most are not achieving optimal performance, according to a new study by the Energy Center of Wisconsin.
| Apr 6, 2013
First look: GlaxoSmithKline's double LEED Platinum office
GlaxoSmithKline and Liberty Property Trust/Synterra Partners transform the work environment with the opening of Five Crescent Drive
| Apr 5, 2013
‘Retainage Laws in the 50 States’ manual from ASA available for subcontractors
A reference manual published by the American Subcontractors Association, Retainage Law in the 50 States, is available for construction subcontractors to understand retainage laws across the U.S.
| Apr 5, 2013
Bangkok gets a leaning tower, that may topple
A seven-story apartment tower under construction in Bangkok has started to tilt and is on the verge of toppling.
