ABC’s Construction Backlog Up in April; Contractor Confidence Down

Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.8 months in April, according to an member survey conducted from April 20 to May 4. The reading is up 0.9 months from April 2021.

The index readings for sales and staffing levels declined in April, while the reading for profit margins moved higher. All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.

“The U.S. economy is facing many headwinds, but for now, the nation’s nonresidential construction segment is handling them,” said ABC Chief Economist Anirban Basu. “One might think that skilled worker shortages, sky-high materials prices, rising interest rates and financial market volatility would have affected industry momentum. Instead, backlog continues to rise, and contractors continue to expect sales, employment and profit margins to expand over the next six months. Demand for construction services remains strong.”