Following an intense winter season, the Associated Builders and Contractors' Construction Backlog Indicator (CBI) revealed a 3.2% decline during the first quarter of 2015.
According to ABC, construction firms across the country reported a revenue-weighted average CBI of 8.4 months, 0.3 months below the final quarter of 2014.
The Northeast saw its backlog decline by 10.2%, a change of 1.04 months from the fourth quarter of last year. The Middle States reported a 0.7% decline to 0.05 months in construction backlog and the West experienced a 25.3% drop or 1.88 months. The South was the only region to report an increase in construction backlog as it rose 5.9% or 0.55 months.
"Weather and a myriad of other factors always make the first quarter CBI difficult to interpret," said ABC Chief Economist Anirban Basu. "A brutal winter may have postponed project-related work, including the signing of contracts. The first quarters of 2012 and 2014 also experienced CBI declines that effectively were reversed during the ensuing second quarters."
Additionally, sharp reductions in oilfield investment affected companies in the Middle States while the West Coast port slowdown impacted firms on the western side of the country. However, the backlog should re-establish an upward trend as the year's warmer months approach and ports return to normal.
Despite the backlog decline, continued job growth, low fuel prices, and wage gains are expected to lead to an increase in consumer spending.
Related Stories
| Dec 10, 2014
International Olympic Committee releases first images of new HQ in Switzerland
Designed by 3XN, the new headquarters is located within a park on the shores of Lake Geneva and adjacent to historic Château de Vidy, which has been the iconic home of the IOC.
| Dec 10, 2014
CannonDesign acquires Astorino, forms design-led design-build division
The merger also extends CannonDesign’s presence in the markets Astorino currently serves, namely Pittsburgh and Abu Dhabi.
| Dec 9, 2014
Steven Holl wins Mumbai City Museum competition with 'solar water' scheme
Steven Holl's design for the new wing features a reflective pool that will generate energy.
| Dec 9, 2014
ABC economist predicts continued construction industry growth in 2015
In his latest report, ABC's Chief Economist Anirban Basu forecasts nonresidential construction spending to expand by roughly 7.5% next year, led by the power, lodging, office, and manufacturing sectors.
| Dec 8, 2014
How brick and mortar enables online retail
According to a shopping preferences study conducted by A.T. Kearney, as many as two-thirds of shoppers go to a physical store before or after making an online purchase, writes Gensler's Jill Nickels.
| Dec 8, 2014
The year’s boldest BIM/VDC themes
High-speed rendering software, custom APIs, virtual reality tools, and BIM workflow tips were among the hottest BIM/VDC topics in 2014.
| Dec 8, 2014
AEC firms upbeat about financial results, 2015 looking rosier [exclusive BD+C survey]
The market outlook is brighter for U.S. architecture, engineering, and construction companies, with a majority of AEC firms reporting higher revenues, strong forecasts, and sound financial health, according to BD+C's annual Market Forecast Survey.
| Dec 8, 2014
The global sanitation crisis leads to 2.5 million deaths every year
When we see the incredible technology being produced by global plumbing manufacturers, it’s hard to conceive why no viable technical solution to the global sanitation issue has come forth, writes BD+C's Robert Cassidy.
| Dec 8, 2014
Moshe Safdie wants to reinvent airports with Jewel Changi Airport addition
A new addition to Singapore's Changi Airport, designed by Moshe Safdie, will feature a waterfall and extensive indoor gardens.
