ABC: Construction Backlog Indicator Rises in July

WASHINGTON, DC — Related Builders and Contractors reported as we speak that its Development Backlog Indicator rose to eight.8 months in July, in keeping with an ABC member survey carried out July 24 to Aug. 4. The studying is up 0.4 months since July 2024. 

Backlog is up on a year-over-year foundation in each area apart from the South. Regardless of the shortage of development, backlog within the South stays considerably longer than in another area.

ABC’s Development Confidence Index studying for gross sales and revenue margins declined in July, whereas the studying for staffing ranges rose to the best degree since April. The readings for all three elements stay above the edge of fifty, indicating expectations for development over the subsequent six months.

“Backlog continued to rise in July regardless of the continued decline in building spending,” stated ABC Chief Economist Anirban Basu. “A few of that power will be attributed to the truth that 1 in each 8 ABC members is presently below contract to carry out work on a knowledge heart challenge. Backlog within the infrastructure class has additionally elevated significantly over the previous yr, and public building exercise has outperformed the non-public sector over the previous a number of months.

“Whereas backlog rose, contractor confidence slipped in July, particularly with reference to revenue margins,” stated Basu. “Fewer than 2% of ABC members count on their revenue margins to extend considerably over the subsequent six months, the fewest since October 2024. That is seemingly resulting from commerce coverage and the latest acceleration in supplies value escalation; greater than 80% of ABC members have been notified of tariff-related value will increase.”