Associated Builders and Contractors Construction Backlog Indicator Holds Steady in May

The Associated Builders and Contractors (ABC), a national construction industry trade association representing more than 22,000 members, recently reported (6-13-23) that its Construction Backlog Indicator remained unchanged month-over-month at 8.9 months in May. Year-over-year, the reading was 0.1 months lower.

ABC notes that the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlogs in infrastructure increased in every region but the Northeast.

Adding additional background and his analysis to the May Construction Backlog Indicator report, ABC’s Chief Economist Dr. Anirban Basu said:

“During a period of ongoing tumult associated with major bank failures, a near-miss debt ceiling crisis, and shifting monetary policy, nonresidential construction backlog has remained remarkably stable. At nearly nine months, backlog is essentially unchanged from a year ago and the previous month.

Moreover, contractor confidence remains elevated despite massive increases in cost of capital and growing concerns over the nation’s commercial real estate segment, with firms indicating sufficient demand and associated pricing power that will keep profit margins steady or better. Contractors also expect to bring on additional talent over the next six months, an indication of ongoing industry expansion.”