ABC Construction Backlog Dropped in August
According to an ABC member survey performed between August 20 and September 5, the Construction Backlog Indicator decreased to 8.2 months in August.
The reading is down 1.0 month from August 2023.
Only the infrastructure category saw a monthly increase in backlog among the three major divisions, indicating a surge in public construction spending.
Nonetheless, during the last year, backlog has decreased in all three areas.
The ABC Construction Confidence Index ratings for sales, profit margins, and staffing levels dropped in August.
The numbers for sales and staffing levels remain above 50, indicating that growth is expected over the next six months, while the score for profit margin projections has fallen below that threshold.
“As predicted, confidence among contractors is slipping,” ABC Chief Economist Anirban Basu stated.
“While ABC contractor members are still anticipating expanding sales and employment, profits margins are increasingly under pressure as project owners face high borrowing and construction delivery costs in the context of a slowing economy. Many projects have been postponed, resulting in recent backlog declines, most notably in the South.”
