Associated Builders and Contractors reports that its Construction Backlog Indicator increased to 8.2 months in March — up from 8.1 months in February but down 0.5 months from March 2023. In fact, backlog is down over the past year for every region except the Middle States, which now has the second-largest backlog of any region. The South continues to have the largest backlog, despite a large decline over the past year.
Meanwhile ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in March. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months.
“Given headwinds such as high borrowing costs, emerging supply chain issues, project financing challenges and labor shortages, the persistent optimism among nonresidential construction contractors is astonishing,” ABC’s chief economist, Anirban Basu, said in a statement. “Last month, contractors reported rising backlog and greater conviction regarding likely growth in sales, employment and profit margins.”
Data for both the Indicator and the Index are based on an ABC member survey conducted between March 20 and April 3.
