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
| Sep 7, 2012
Suffolk awarded One Channel Center project in Boston
Firm to manage $125 million, 525,000-sf office building project.
| Sep 7, 2012
Manhattan Construction Co. to build Fairfax office building
Designed by Noritake Associates of Alexandria Virginia, the project is LEED-registered, seeking LEED Silver certification.
| Sep 6, 2012
CPPI awarded $30.3 million contract for University of Florida’s Harrell Medical Education Building
The specialized interdisciplinary learning environment will serve as a focal point for integration and program development for all primary care educational activities in the College of Medicine.
| Sep 5, 2012
Skanska tops out residence hall complex at the University of Delaware
Construction firm achieves structural milestone for $71 million student housing expansion project.
| Sep 5, 2012
BehrPro introduces Web Enabled Business model
Free platform offers website development resource for industry professionals.
| Aug 30, 2012
Holcim (US) announces new Deputy Chief Executive Officer
Ruiz began his career with the Holcim Group in 1986 as electrical supervisor with Holcim Apasco, Mexico, later becoming plant manager.
| Aug 30, 2012
John S Clark Co. completes teaching lab at UNC Wilmington
Three-story building provides offices, classrooms, and labs.
| Aug 29, 2012
BOND completes South Cove Community Health Center
$11 million, 21,000 square foot community health center opens in Quincy, Mass.
| Aug 28, 2012
McCarthy begins construction on transportation center at Bob Hope Airport
Designed to meet LEED silver certification standards, the facility will feature unique, above ground base isolators that will resist a maximum credible earthquake.
