ABC’s Construction Backlog Indicator Inches Lower in February

WASHINGTON, DC — Related Builders and Contractors reported on March 11 that its Development Backlog Indicator fell to eight.3 months in February, in accordance with an ABC member survey performed Feb. 20 to March 5. The studying is up 0.2 months since February 2024. 

Backlog fell on a month-to-month foundation for contractors with lower than $100 million in annual revenues whereas growing sharply for contractors with better than $100 million in annual income. These largest contractors have additionally accounted for almost all of the rise in backlog noticed over the previous yr.

ABC’s Development Confidence Index studying for staffing improved, whereas the studying for revenue margins declined. The studying for gross sales was unchanged after rounding. The readings for all three parts stay above the edge of fifty, indicating expectations for development over the subsequent six months.

“Whereas many different financial sentiment readings have deteriorated in current months, contractors stay optimistic that enterprise circumstances will enhance by means of the primary half of 2025,” stated ABC Chief Economist Anirban Basu. “Almost 60% of contractors intend to extend their staffing ranges over the subsequent six months, the best share in over two years. These hiring expectations recommend that the current slowdown in industrywide employment is basically confined to the residential phase. Sure, there are some broader indicators of rising financial weak point, however the outcomes of this ABC member survey means that contractors will stay busy over the subsequent few quarters.”