ABC Nonresidential Construction Backlog Indicator Rises in May; Contractor Confidence Falls

On Monday, Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator (CBI) rose to 9.1 months in May. Year-over-year, backlog was up 0.7 months. The member survey was conducted between May 20 and June 3.

Backlog increased in every region except the South. Despite the monthly decline, the South remained the region with the longest backlog and the largest year-over-year increase.

ABC’s Construction Confidence Index showed that the sales, profit margins, and staffing components all fell in May. All three components remained above the 50 threshold, indicating expectations for growth over the next six months.

Commenting on the report, ABC Chief Economist Anirban Basu said:

“Backlog rose to a nearly three-year high in May. This increase largely reflects the massive data center investments taking place across the nation, as the 14% of ABC members under contract to work on data centers continue to have much higher backlog (11.6 months) than those that are not (8.6 months). The way this boom is disproportionately benefiting larger contractors helps to explain why contractor confidence slipped in May even as backlog continued to climb.”