ABC: Construction Backlog Indicator Remains Stable in August, Contractors Confident

An ABC member poll performed from August 21 to September 6, the Construction Backlog Index fell to 9.2 months in August, a 0.1 month decrease, according to the Associated Builders and Contractors.

The value is 0.5 months higher than the level in August 2022.

Backlog declined monthly for all firm sizes except those with more than $100 million in yearly revenues, with just the smallest two revenue categories having more backlog than in August 2022.

In August, the ABC Construction Confidence Index reading for sales, profit margins, and personnel levels increased.

All three ratings remain above the 50-point mark, indicating that growth is expected over the next six months.

“There’s no sign of a construction recession in the near term,” Anirban Basu, ABC’s Chief Economist, stated.

“If anything, contractors are more upbeat, as policy and technology shifts along with economic transformation, are creating substantial demand for improvements and growth in America’s built environment.”

“While a plurality of contractors expects only small improvements in sales, profit margins and staffing over the next six months, even incremental improvement is remarkable in the context of tightening credit, higher project financing costs and lingering fears of recession,” Basu continued.

“Backlog continues to be at the upper end of historic levels, with the infrastructure category registering substantial gains in backlog in August. That suggests that a growing number of public works projects is poised to break ground.”