ABC’s October Construction Backlog Indicator Falls, Contractor Confidence Rises

According to a poll of its member contractors performed from October 21 to November 4, Associated Builders and Contractors reported a Construction Backlog Indicator of 8.4 months in October.

The reading has remained steady since October 2023.

In October, backlog decreased in all regions except the Northeast, reversing the previous month’s trend in which backlog increased in all regions except the Northeast.

Only the Middle States had a larger backlog than a year ago.

ABC’s Construction Confidence Index scores for sales and personnel numbers rose in October, while profit margins fell somewhat.

All three components have ratings above 50, indicating that they will grow during the following six months.

“While backlog declined in October, it remains at a healthy level and has been remarkably stable over the past year,” Anirban Basu, Chief Economist of ABC stated.

“Like much of the economy, the construction industry remained in some semblance of a holding pattern in October as project owners continue to wait for election outcomes and for interest rates to decline further. Despite this wait-and-see attitude, contractors remain upbeat about the next two quarters. Approximately 53% of ABC members expect their sales to increase over the next six months, while just 22% expect them to decline.”

[Read more about this topic on Abc.org]