Contractor Confidence Index Rebounds in August
Related Builders and Contractors (ABC) reported that its Building Backlog Indicator remained unchanged at 8.7 months in August, based on an ABC member survey performed August 22 to September 7. The studying is a full month increased than in August 2021.
Backlog is down from the degrees of the second quarter of 2022, however stays increased than at any level from March 2020 to March 2022. Whereas the CBI studying fell for contractors within the south in August, it stays the U.S. area with the lengthiest backlog.
ABC’s Building Confidence Index readings for gross sales, revenue margins, and staffing ranges elevated in August. The index for revenue margins bounced again into constructive territory whereas the gross sales and staffing degree indices remained above 50, indicating expectations of progress over the subsequent six months.
“Regardless of the excessive danger of recession, contractors collectively anticipate gross sales, employment, and revenue margins to develop over the subsequent six months,” mentioned ABC Chief Economist Anirban Basu. “Backlog is down from the cyclical peak in early 2022 and has been roughly flat in latest months.”
“The buoyancy of the nation’s nonresidential development market is admittedly fairly exceptional,” mentioned Basu. “Rising rates of interest have already pushed the single-family homebuilding market into recession, however brisk nonresidential exercise continues. Many nonresidential contractors are working at capability, and their principal frustrations relate to supply-side points like employee shortages, gear supply delays, and elevated supplies costs, versus demand for his or her providers.”