WASHINGTON, DC — Related Builders and Contractors reported as we speak that its Development Backlog Indicator declined to eight.7 months in March, in accordance with an ABC member survey carried out March 20 to April 3. The studying is 0.4 months greater than in March 2022.
View ABC’s Development Backlog Indicator and Development Confidence Index tables for March. View the historic Development Backlog Indicator and Development Confidence Index information collection.
Backlog slipped in March and is now at its lowest degree since August 2022. Backlog is down on a month-to-month foundation in each area apart from the South, which continues to be related to elevated ranges of present and future building exercise.
ABC’s Development Confidence Index studying for gross sales inched greater in March, whereas the readings for revenue margins and staffing ranges fell. All three readings stay above the edge of fifty, indicating expectations of development over the subsequent six months.
“The deceleration in nonresidential building exercise could have began,” mentioned ABC Chief Economist Anirban Basu. “With widespread fears of recession, credit score circumstances tightening and extra decision-makers turning their consideration to price containment, new building work could also be tougher for contractors to line up.
“Whereas the arrogance and backlog information weakened in March, they point out a slowing of exercise moderately than a shift into reverse,” mentioned Basu. “There’s a broadly held view that monetary circumstances are tightening within the aftermath of the failures of Silicon Valley Financial institution and Signature Financial institution. To the extent that that is true, one might anticipate additional slowing and fewer business confidence throughout the months forward.”
Notice: The reference months for the Development Backlog Indicator and Development Confidence Index information collection had been revised on Could 12, 2020, to higher mirror the survey interval. CBI quantifies the earlier month’s work below contract primarily based on the most recent financials out there, whereas CCI measures contractors’ outlook for the subsequent six months.
Go to abc.org/economics for the Development Backlog Indicator and Development Confidence Index, plus evaluation of spending, employment, job openings and the Producer Value Index.