Backlog decreased monthly for all company size categories except those with more than $100 million in annual revenues. In contrast, only the smallest two revenue categories have a higher backlog than August 2022.
ABC’s Construction Confidence Index reading for sales, profit margins, and staffing levels increased in August. All three readings remain above 50, indicating growth expectations over the next six months.
“There’s no sign of a construction recession in the near term,” said ABC Chief Economist Anirban Basu. “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.
“While a plurality of contractors expects only small improvements in sales, profit margins and staffing over the next six months, even incremental improvement is remarkable in the context of tightening credit, higher project financing costs and lingering fears of recession,” said Basu. “Backlog continues to be at the upper end of historic levels, with the infrastructure category registering substantial gains in backlog in August. That suggests that a growing number of public works projects is poised to break ground.”