Markets

ABC’s Construction Backlog Indicator Plummets in August; Contractor Confidence Down

Associated Builders and Contractors reported that its Construction Backlog Indicator fell sharply to 7.7 months in August, according to an ABC member survey conducted Aug. 19 to Sept. 1.
By ABC
September 21, 2021
Topics
Markets

Associated Builders and Contractors reported that its Construction Backlog Indicator fell sharply to 7.7 months in August, according to an ABC member survey conducted Aug. 19 to Sept. 1. The reading is down 0.8 months from July 2021 and down 0.3 months from August 2020.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all fell modestly in August but remain above the threshold of 50, indicating expectations of growth over the next six months.

“Both contractor backlog and confidence have begun to fade,” says ABC Chief Economist Anirban Basu. “Higher materials prices and labor costs have conspired to put more projects on hold. In many instances, expanding costs have rendered projects infeasible.

“That said, it is still the case that contractors collectively anticipate sales, staffing levels and margins to rise over the next six months,” Basu says. “The expected pace of improvement has softened, however. With so much liquidity continuing to be injected into financial systems, investors have considerable sums to deploy in new investments. Real estate valuations and construction volumes benefit from such dynamics. Recent dips in commodity prices and more normal labor market functioning should help translate into slower cost escalations and rebounding backlog during the months ahead, ultimately reversing the backlog decline sustained in August.”

Click here for historical CCI and CBI data and here for methodology. Visit abc.org/economics for the CBI and CCI reports, plus analysis of spending, employment, GDP and the Producer Price Index.

by ABC

Associated Builders and Contractors is a national construction industry trade association representing more than 21,000 members. Founded on the merit shop philosophy, ABC and its 69 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.

Related stories

Markets
History on Deck: A Deeper Dive on the Restoration of the USS Alabama
By Grace Calengor
When it was time to replace the World War II–era teak decking on the battleship USS Alabama, the latest scanning and modeling technology ensured a smooth, safe project—and surety bonding protected its $8.5-million budget against a few unexpected obstacles.
Markets
Infrastructure: Going After IIJA-Funded Work Two Years Later
By Scott Berman
When is $1.2 trillion in infrastructure spending not $1.2 trillion in infrastructure spending? When it comes with a lot of regulations and requirements—and is subject to project labor agreements on many jobs. More than two years after the Infrastructure Investment and Jobs Act was signed into law, here’s what merit-shop contractors should know about going after IIJA-funded work.
Markets
Large Renovation Projects Will Be Abundant in 2024
By Mary Scott Nabers
Design-build isn't the only hot construction project topic. Large renovations are set to make a comeback this year—and stay relevant for years to come.

Follow us




Subscribe to Our Newsletter

Stay in the know with the latest industry news, technology and our weekly features. Get early access to any CE events and webinars.