Construction Backlog Reaches 20-Month High, Says ABC

Building backlog rose to eight.7 months in April, in keeping with the Construction Backlog Indicator survey carried out by Related Builders and Contractors. The determine is up 0.2 months since March, and is the very best determine recorded by the survey in 20 months.

“Contractors stay busy,” Anirban Basu, ABC chief economist, stated in an announcement. “Backlog rose in April and is now on the highest degree since September 2023.”

Nonetheless, he added, “Practically 22% of contractors had a undertaking delayed or canceled in April on account of tariffs, up from 18% in March, whereas 87% have been notified of tariff-related supplies value will increase.”

Since April 2024, backlog has risen 0.3%. The rise is essentially spurred by initiatives over $100 million, up 2.2% for the 12 months, whereas backlog for initiatives underneath $30 million rose 0.2%. The quantity initiatives within the works within the $30-$50 million and $50-$100 million ranges fell 0.8% and 0.6%, respectively.

Total, contractors stay comparatively constructive in regards to the outlook for building within the close to future, in keeping with ABC’s Building Confidence Index for April, however uncertainty stays when trying on the long-term image. “Whereas ABC members stay upbeat in regards to the near-term outlook, the share of respondents that anticipate their gross sales to say no over the subsequent six months rose to 19% in April, up 6 proportion factors because the begin of the 12 months,” Basu identified.