Construction Backlog Reaches 20-Month High, Says ABC

Building backlog rose to eight.7 months in April, in line with the Construction Backlog Indicator survey carried out by Related Builders and Contractors. The determine is up 0.2 months since March, and is the best determine recorded by the survey in 20 months.

“Contractors stay busy,” Anirban Basu, ABC chief economist, stated in a press release. “Backlog rose in April and is now on the highest stage since September 2023.”

Nonetheless, he added, “Almost 22% of contractors had a challenge delayed or canceled in April resulting from tariffs, up from 18% in March, whereas 87% have been notified of tariff-related supplies worth will increase.”

Since April 2024, backlog has risen 0.3%. The rise is essentially spurred by initiatives over $100 million, up 2.2% for the 12 months, whereas backlog for initiatives underneath $30 million rose 0.2%. The quantity initiatives within the works within the $30-$50 million and $50-$100 million ranges fell 0.8% and 0.6%, respectively.

Total, contractors stay comparatively optimistic concerning the outlook for development within the close to future, in line with ABC’s Building Confidence Index for April, however uncertainty stays when wanting on the long-term image. “Whereas ABC members stay upbeat concerning the near-term outlook, the share of respondents that count on their gross sales to say no over the subsequent six months rose to 19% in April, up 6 proportion factors because the begin of the 12 months,” Basu identified.