Associated Builders and Contractors’ Construction Confidence Index readings for sales, profit margins and staffing levels decreased in July, reaching its lowest level since November 2022.
However, all three readings were above the 50 threshold, indicating expectations for growth over the next six months.
“Contractor confidence regarding profit margins now stands at the lowest level since November 2022, which comes as little surprise," ABC Chief Economist Anirban Basu said in a statement. “There are now strong indications that elevated interest rates have finally taken their toll on a number of privately financed construction segments, as well as the broader economy.”
Meanwhile, ABC's Construction Backlog Indicator held steady at 8.4 months in July, down 0.9 months from July 2023.
Over the past year, contractors with greater than $100 million in revenues have longer backlogs than a year ago.
Read the full construction backlog and construction confidence report here.
