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
| Dec 17, 2014
Demand softens, but outlook for Architecture Billings Index remains positive
The AIA's Architecture Billings Index for November was 50.9, down from a mark of 53.7 in October. Despite the drop, the ABI continued its seven-month run of positive scores (above 50).
Sponsored | | Dec 16, 2014
Quadcopters save project team $15K in warranty work
On a recent trip to see what technology Todd Wynne and the rest of the team at Rogers-O’Brien Construction have been tinkering with, I had a chance to experience firsthand which new hardware innovations will one day be applied in the AEC space.
| Dec 15, 2014
SHoP Architects plans to turn NY's Seaport District into pedestrianized, mixed-use area
The scheme includes a proposed 500-foot luxury residential tower that would jut out into the harbor, extending the Manhattan grid out into the waterfront.
| Dec 15, 2014
Frank Lloyd Wright School of Architecture launches fundraising campaign for independent incorporation
The Frank Lloyd Wright Foundation announced today that it approved a possible path toward independent incorporation of the Frank Lloyd Wright School of Architecture by raising $2 million before the end of 2015.
| Dec 12, 2014
Dunkin’ Donuts launches certification for green restaurant buildings
The company aims to build 100 new DD Green-certified restaurants by the end of 2016.
Sponsored | | Dec 11, 2014
Fire rated glass contributes to Salt Lake City Public Safety Building’s sustainable and resilient design goals
One of the most exciting new buildings to open its doors this year is the Salt Lake City Public Safety Building Salt Lake City, Utah. This $125 million, 335,000-sf facility blends sustainability and resiliency under one roof. SPONSORED CONTENT
| Dec 10, 2014
International Olympic Committee releases first images of new HQ in Switzerland
Designed by 3XN, the new headquarters is located within a park on the shores of Lake Geneva and adjacent to historic Château de Vidy, which has been the iconic home of the IOC.
| Dec 10, 2014
CannonDesign acquires Astorino, forms design-led design-build division
The merger also extends CannonDesign’s presence in the markets Astorino currently serves, namely Pittsburgh and Abu Dhabi.
| Dec 9, 2014
Steven Holl wins Mumbai City Museum competition with 'solar water' scheme
Steven Holl's design for the new wing features a reflective pool that will generate energy.
| Dec 9, 2014
ABC economist predicts continued construction industry growth in 2015
In his latest report, ABC's Chief Economist Anirban Basu forecasts nonresidential construction spending to expand by roughly 7.5% next year, led by the power, lodging, office, and manufacturing sectors.
