WASHINGTON, DC — Related Builders and Contractors reported right this moment that its Building Backlog Indicator elevated to 9.2 months in February, based on an ABC member survey carried out Feb. 20 to March 6. The studying is 1.2 months increased than in February 2022.
View ABC’s Building Backlog Indicator and Building Confidence Index tables for February. View the historic Building Backlog Indicator and Building Confidence Index information collection.
Backlog rebounded in February and for the previous 4 months has hovered round highs not seen for the reason that begin of the pandemic. The Southern area continues to publish the best backlog of any area and, as of February, has had a minimum of 11 months of backlog in 4 of the earlier 5 months.
ABC’s Building Confidence Index studying for gross sales, revenue margins and staffing ranges elevated in February. All three readings stay above the edge of fifty, indicating expectations of progress over the following six months.
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“Regardless of a depressing financial forecast and terribly elevated borrowing prices, contractor backlog and confidence proceed to rise,” mentioned ABC Chief Economist Anirban Basu. “This mirrors the broader economic system, which has up to now proved resilient within the face of rising rates of interest. Whereas financial power, significantly relating to labor demand, is stunning, rate of interest will increase sometimes take 12 to 18 months to have an effect on the broader economic system, and the primary rate of interest improve occurred in March 2022.
“Whereas backlog stays at a traditionally elevated stage, borrowing prices will proceed to rise throughout the subsequent a number of months, and contractors proceed to battle within the face of expert labor shortages,” mentioned Basu. “If financial momentum fades this yr, as a majority of forecasters proceed to foretell, then backlog and confidence could decline, particularly for contractors working predominantly on privately financed tasks.”
Word: The reference months for the Building Backlog Indicator and Building Confidence Index information collection have been revised on Might 12, 2020, to raised replicate the survey interval. CBI quantifies the earlier month’s work beneath contract primarily based on the most recent financials obtainable, whereas CCI measures contractors’ outlook for the following six months.
Go to abc.org/economics for the Building Backlog Indicator and Building Confidence Index, plus evaluation of spending, employment, job openings and the Producer Worth Index.