Associated Builders and Contractors recently reported that its Construction Backlog Indicator contracted to 8.1 months during January 2019, down 0.8 months or 9.3% compared to the fourth quarter 2018 reading of 8.9 months.
“This represents the latest in a number of indicators suggesting that U.S. economic momentum has begun to wane,” said Anirban Basu, ABC’s chief economist. “Other data tracking retail sales, employment growth and the trade deficit suggest that in contrast to 2018, this year will not be as strong from an economic growth perspective.
“January’s decline in nonresidential backlog was significant, slipping to levels last observed in 2014,” said Basu. “From an industry segment perspective, the decline in backlog was especially sharp in the infrastructure category, which may have been related to the federal shutdown in January.
“There was one meaningful exception in the Middle States, where backlog continues to rise,” said Basu. “This is potentially a result of stronger industrial production growth in 2017 and 2018, which has produced greater demand for modern industrial space. As with any January data release, weather may also have played a role in shaping the results. Accordingly, more clarity regarding contractual activity will arrive during the months ahead.”
Related Stories
Market Data | Mar 23, 2020
Coronavirus will reshape UAE construction
The impact of the virus has been felt in the UAE, where precautionary measures have been implemented to combat the spread of the virus through social distancing.
Coronavirus | Mar 20, 2020
Pandemic has halted or delayed projects for 28% of contractors
Coronavirus-caused slowdown contrasts with January figures showing a majority of metro areas added construction jobs; Officials note New infrastructure funding and paid family leave fixes are needed.
Market Data | Mar 17, 2020
Construction spending to grow modestly in 2020, predicts JLL’s annual outlook
But the coronavirus has made economic forecasting perilous.
Market Data | Mar 16, 2020
Grumman/Butkus Associates publishes 2019 edition of Hospital Benchmarking Survey
Report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | Mar 12, 2020
New study from FMI and Autodesk finds construction organizations with the highest levels of trust perform twice as well on crucial business metrics
Higher levels of trust within organizations and across project teams correlate with increased profit margins, employee retention and repeat business that can all add up to millions of dollars of profitability annually.
Market Data | Mar 11, 2020
The global hotel construction pipeline hits record high at 2019 year-end
Projects currently under construction stand at a record 991 projects with 224,354 rooms.
Market Data | Mar 6, 2020
Construction employment increases by 43,000 in February and 223,000 over 12 months
Average hourly earnings in construction top private sector average by 9.9% as construction firms continue to boost pay and benefits in effort to attract and retain qualified hourly craft workers.
Market Data | Mar 4, 2020
Nonresidential construction spending attains all-time high in January
Private nonresidential spending rose 0.8% on a monthly basis and is up 0.5% compared to the same time last year.
Market Data | Feb 21, 2020
Construction contractor confidence remains steady
70% of contractors expect their sales to increase over the first half of 2020.
Market Data | Feb 20, 2020
U.S. multifamily market gains despite seasonal lull
The economy’s steady growth buoys prospects for continued strong performance.
