ABC’s March Construction Backlog Indicator Reached its Lowest Point Since August 2022

An ABC member survey conducted from March 20 to April 3, the Construction Backlog Index fell to 8.7 months in March, according to the Associated Builders and Contractors.

The figure is 0.4 months greater than in March 2022.

View the historic Construction Backlog Indicator and Construction Confidence Index data series.

The backlog fell in March to its lowest level since August 2022.

Backlog is decreasing on a monthly basis in all regions except the South, which is associated with high levels of current and prospective construction activity.

In March, ABC’s Construction Confidence Index reading for sales increased slightly, while values for profit margins and personnel levels declined.

All three readings remain over the 50-point threshold, indicating that growth is expected over the next six months.

“The deceleration in nonresidential construction activity may have started,” Anirban Basu, ABC’s Chief Economist, stated.

“With widespread fears of recession, credit conditions tightening and more decision-makers turning their attention to cost containment, new construction work may be more difficult for contractors to line up.

“While the confidence and backlog data weakened in March, they indicate a slowing of activity rather than a shift into reverse,” Basu continued.

“There is a widely held view that financial conditions are tightening in the aftermath of the failures of Silicon Valley Bank and Signature Bank. To the extent that this is true, one could anticipate further slowing and less industry confidence during the months ahead.”