ABC’s Construction Backlog Rises; Contractor Confidence Falters

Associated Builders and Contractors reported that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17-June 3. The reading is up one month from May 2021.

Backlog in the infrastructure segment jumped from 8.7 months in April to 9.3 months in May, and the Northeast and South regions continue to outperform the middle states and the West. Contractors with more than $100 million in annual revenues enjoyed the highest backlog, at 13.2 months.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels declined in May. The indices for sales and staffing remain above the threshold of 50, indicating expectations of growth over the next six months, while the reading for profit margins was exactly 50 for the month.