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
Codes and Standards | Sep 9, 2019
Free app calculates maximum allowable heights and areas for buildings
A free app that calculates the maximum allowable heights and areas for buildings of various occupancy classifications and types of construction has been released.
Retail Centers | Sep 6, 2019
Another well-known retailer files for bankruptcy: Here's the solution to more empty anchor stores
Where can you find the future of retail? At the intersection of experience and instant gratification.
Giants 400 | Sep 5, 2019
Top 85 Hotel Sector Construction Firms for 2019
Suffolk, Yates Companies, AECOM, Swinerton, and Turner top the rankings of the nation's largest hotel sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Contractors | Sep 5, 2019
Katerra adds two GCs to its stable
UEB Builders and Fortune-Johnson General Contractors specialize in multifamily and mixed-used developments.
Giants 400 | Sep 4, 2019
Top 90 K-12 School Sector Construction Firms for 2019
Gilbane, Balfour Beatty, Turner, CORE Construction, and Skanska lead the rankings of the nation's largest K-12 school sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Market Data | Sep 3, 2019
Nonresidential construction spending slips in July 2019, but still surpasses $776 billion
Construction spending declined 0.3% in July, totaling $776 billion on a seasonally adjusted annualized basis.
Giants 400 | Aug 30, 2019
2019 K-12 School Giants Report: 360-degree learning among top school design trends for 2019
K-12 school districts are emphasizing practical, hands-on experience and personalized learning.
Industry Research | Aug 29, 2019
Construction firms expect labor shortages to worsen over the next year
A new AGC-Autodesk survey finds more companies turning to technology to support their jobsites.
Codes and Standards | Aug 29, 2019
Industry leaders ask for government help as trades shortage worsens
AGC asks for more funding for education and increased immigration to fill gaps.
Giants 400 | Aug 28, 2019
Top 45 Data Center Construction Firms for 2019
Whiting-Turner, Turner, Holder, DPR, and Fortis top the rankings of the nation's largest data center sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
