Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.
Backlog declined on a monthly basis for every company size except those contractors with greater than $100 million in annual revenues. On an annual basis, backlog is down for contractors of all sizes.
ABC’s Construction Confidence Index readings for profit margins and staffing levels fell slightly in May, while the reading for sales improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Over a year has passed since the Federal Reserve raised the target range of the federal funds rate above 5%," said ABC Chief Economist Anirban Basu. "Despite widespread expectations that rates will remain elevated through at least the end of the year, contractors remain confident about the future, with a majority of contractors expecting their sales and staffing levels to expand over the next six months.
“Although backlog has been lower in 2024 than it was during 2023, it has also been stable,” said Basu. “While significant spending activity in manufacturing and infrastructure-related segments has kept contractors busy, input cost escalation has reemerged in recent months. As a result, contractor confidence regarding profit margins has fallen to the lowest level since November 2023.”
Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for May. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Related Stories
M/E/P Systems | Oct 30, 2024
After residential success, DOE will test heat pumps for cold climates in commercial sector
All eight manufacturers in the U.S. Department of Energy’s Residential Cold Climate Heat Pump Challenge completed rigorous product field testing to demonstrate energy efficiency and improved performance in cold weather.
MFPRO+ New Projects | Oct 30, 2024
Luxury waterfront tower in Brooklyn features East River and Manhattan skyline views
Leasing recently began for The Dupont, a 41-story luxury rental property along the Brooklyn, N.Y., waterfront. Located within the 22-acre Greenpoint Landing, where it overlooks the newly constructed Newtown Barge Park, the high-rise features East River and Manhattan skyline views along with 20,000 sf of indoor and outdoor communal space.
Resiliency | Oct 29, 2024
Climate change degrades buildings slowly but steadily
While natural disasters such as hurricanes and wildfires can destroy buildings in minutes, other factors exacerbated by climate change degrade buildings more slowly but still cause costly damage.
Hotel Facilities | Oct 29, 2024
Hotel construction pipeline surpasses 6,200 projects at Q3 2024
According to the U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, the total hotel pipeline stands at 6,211 projects/722,821 rooms, a new all-time high for projects in the U.S.
Office Buildings | Oct 29, 2024
Editorial call for Office Building project case studies
BD+C editors are looking to feature a roundup of office building projects for 2024, including office-to-residential conversions. Deadline for submission: December 6, 2024.
Healthcare Facilities | Oct 28, 2024
New surgical tower is largest addition to UNC Health campus in Chapel Hill
Construction on UNC Health’s North Carolina Surgical Hospital, the largest addition to the Chapel Hill campus since it was built in 1952, was recently completed. The seven-story, 375,000-sf structure houses 26 operating rooms, four of which are hybrid size to accommodate additional equipment and technology for newly developed procedures.
Contractors | Oct 25, 2024
Construction industry CEOs kick off effort to prevent suicide among workers
A new construction industry CEO Advisory Council dedicated to addressing the issue of suicide in the construction industry recently took shape. The council will guide an industry-wide effort to develop solutions targeting the high rate of suicide among construction workers.
Sports and Recreational Facilities | Oct 24, 2024
Stadium renovation plans unveiled for Boston’s National Women’s Soccer League
A city-owned 75-year-old stadium in Boston’s historic Franklin Park will be renovated for a new National Women’s Soccer League team. The park, designed by Fredrick Law Olmsted in the 1880s, is the home of White Stadium, which was built in 1949 and has since fallen into disrepair.
Laboratories | Oct 23, 2024
From sterile to stimulating: The rise of community-centric life sciences campuses
To distinguish their life sciences campuses, developers are partnering with architectural and design firms to reimagine life sciences facilities as vibrant, welcoming destinations. By emphasizing four key elements—wellness, collaboration, biophilic design, and community integration—they are setting their properties apart.
Adaptive Reuse | Oct 22, 2024
Adaptive reuse project transforms 1840s-era mill building into rental housing
A recently opened multifamily property in Lawrence, Mass., is an adaptive reuse of an 1840s-era mill building. Stone Mill Lofts is one of the first all-electric mixed-income multifamily properties in Massachusetts. The all-electric building meets ambitious modern energy codes and stringent National Park Service historic preservation guidelines.
