‘No sign of a construction recession in the near term,’ says ABC Chief Economist

2023-09-21T11:51:00-04:00

The Associated Builders and Contractors’ Chief Economist Anirban Basu has struck an optimistic note about the near-term health of the construction industry. The assessment comes as ABC releases its latest Construction Backlog Indicator, which found that backlogs declined to 9.2 months in August from 9.3 months in July. The figure remains 0.5 months above the August 2022 level.

“There’s no sign of a construction recession in the near term,” Basu said. “If anything, contractors are more upbeat, as policy and technology shifts along with economic transformation, are creating substantial demand for improvements and growth in America’s built environment.”

Construction Backlog Indicator. Image credit: Associated Builders and Contractors

ABC’s latest figures also suggest a divide in resilience between contractors with more than $100 million in annual revenues and smaller contractors. Backlogs among contractors with revenues over $100 million increased by 3.2 months from July, while backlogs...

Construction Backlog Indicator reaches highest level since 2019

2022-12-15T09:00:00-05:00

The Associated Builders and Contractors (ABC) has reported that its Construction Backlog Indicator (CBI) has increased to 9.2 months in November, the highest level since the second quarter of 2019.

This reading is 0.4 months up from October and a 0.8-month increase from November 2021. ABC’s CBI measures the amount of work that will be performed by commercial and industrial contractors in the months ahead. November’s rise is attributed to contractors with under $30 million in revenue, which saw a 0.6-month change from October.

The commercial and institutional categories and healthcare-related construction were the main drivers of the backlog improvement.

Graphic: Associated Builders and Contractors

“The rise in backlog is remarkable and unexpected,” said ABC Chief Economist Anirban Basu. “A number of contractors have been reporting that their backlog has risen rapidly over the past three months, which is counterintuitive given the pervasive view that the broader economy is headed i...

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‘No sign of a construction recession in the near term,’ says ABC Chief Economist

Construction Backlog Indicator reaches highest level since 2019