ABC: Construction Backlog Indicator Rises in July

WASHINGTON, DC — Related Builders and Contractors reported at present that its Development Backlog Indicator rose to eight.8 months in July, in accordance with an ABC member survey performed July 24 to Aug. 4. The studying is up 0.4 months since July 2024. 

Backlog is up on a year-over-year foundation in each area aside from the South. Regardless of the shortage of progress, backlog within the South stays considerably longer than in some other area.

ABC’s Development Confidence Index studying for gross sales and revenue margins declined in July, whereas the studying for staffing ranges rose to the best stage since April. The readings for all three parts stay above the brink of fifty, indicating expectations for progress over the subsequent six months.

“Backlog continued to rise in July regardless of the continued decline in building spending,” mentioned ABC Chief Economist Anirban Basu. “A few of that power could be attributed to the truth that 1 in each 8 ABC members is at present below contract to carry out work on an information middle mission. Backlog within the infrastructure class has additionally elevated significantly over the previous yr, and public building exercise has outperformed the personal sector over the previous a number of months.

“Whereas backlog rose, contractor confidence slipped in July, particularly as regards to revenue margins,” mentioned Basu. “Fewer than 2% of ABC members anticipate their revenue margins to extend considerably over the subsequent six months, the fewest since October 2024. That is possible because of commerce coverage and the current acceleration in supplies worth escalation; greater than 80% of ABC members have been notified of tariff-related worth will increase.”