WASHINGTON, DC — Related Builders and Contractors studies as we speak that its Building Backlog Indicator remained unchanged at 9.2 months in December, in keeping with an ABC member survey performed Dec. 20, 2022, to Jan. 5, 2023. The studying is one month increased than in December 2021.
View ABC’s Building Backlog Indicator and Building Confidence Index tables for December 2022.
Backlog stays at its highest degree because the second quarter of 2019. This has been very true within the South, which has been the case for most of the previous a number of years.
ABC’s Building Confidence Index studying for revenue margins and gross sales elevated in December, whereas the studying for staffing ranges moved decrease. All three readings stay above the edge of fifty, indicating expectations of development over the subsequent six months.
“Contractors enter the brand new yr with loads of optimism,” mentioned ABC Chief Economist Anirban Basu. “Backlog stays elevated, which signifies that, even when the economic system have been to enter recession this yr, contractors would seemingly be insulated from important hurt. Somewhat than fixate on the opportunity of a recession, many contractors stay centered on development, with expectations for rising gross sales and staffing ranges over the subsequent half yr. Even the studying on revenue margins elevated this month, maybe reflecting an improved provide chain.
“Whereas 2023 continues to be crammed with promise, contractors might quickly present extra concern,” mentioned Basu. “Anecdotal proof means that financing industrial actual property tasks is harder, due partially to recession predictions. The final improve in the price of capital has additionally jeopardized many tasks, with sure contractors noticing a rise in postponements.”
Be aware: The reference months for the Building Backlog Indicator and Building Confidence Index information sequence have been revised on Could 12, 2020, to raised mirror the survey interval. CBI quantifies the earlier month’s work beneath contract primarily based on the newest financials accessible, whereas CCI measures contractors’ outlook for the subsequent six months.
Go to abc.org/economics for the Building Backlog Indicator and Building Confidence Index, plus evaluation of spending, employment, job openings, GDP and the Producer Worth Index.