Contractors’ backlogs and confidence are slipping, the Associated Builders and Contractors’ October survey found.
According to ABC’s October Construction Confidence Index, “Nearly 65% of contractors indicated that they think the U.S. construction industry is contracting,” said Anirban Basu, chief economist at ABC. “This dismal assessment accompanied the lowest backlog reading since May, and 23% of contractors expect their sales to decline over the next six months, the highest share in over a year.”
Down 0.1 months since September, ABC’s Construction Backlog Indicator fell to an average of 8.4 months in October. The decrease in backlog especially impacts small contractors, who have just 5.8 months in average backlog.
ABC’s findings are consistent with the industry’s ongoing reliance on manufacturing construction and surging demand for data centers. Basu explained that approximately one in seven contractors are hired to work on data centers. Unlike general contractors, data center contractors have a backlog of 10.9 months.
The full report can be viewed here.
