ABC’s Construction Backlog Indicator Inches Lower in February

WASHINGTON, DC — Related Builders and Contractors reported on March 11 that its Building Backlog Indicator fell to eight.3 months in February, in keeping with an ABC member survey performed Feb. 20 to March 5. The studying is up 0.2 months since February 2024. 

Backlog fell on a month-to-month foundation for contractors with lower than $100 million in annual revenues whereas rising sharply for contractors with better than $100 million in annual income. These largest contractors have additionally accounted for almost all of the rise in backlog noticed over the previous 12 months.

ABC’s Building Confidence Index studying for staffing improved, whereas the studying for revenue margins declined. The studying for gross sales was unchanged after rounding. The readings for all three elements stay above the brink of fifty, indicating expectations for development over the subsequent six months.

“Whereas many different financial sentiment readings have deteriorated in current months, contractors stay optimistic that enterprise situations will enhance by means of the primary half of 2025,” stated ABC Chief Economist Anirban Basu. “Practically 60% of contractors intend to extend their staffing ranges over the subsequent six months, the very best share in over two years. These hiring expectations counsel that the current slowdown in industrywide employment is basically confined to the residential section. Sure, there are some broader indicators of rising financial weak spot, however the outcomes of this ABC member survey means that contractors will stay busy over the subsequent few quarters.”