ABC’s Construction Backlog Indicator Holds Steady in November

WASHINGTON, DC — Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.4 months in November, according to an ABC member survey conducted Nov. 20 to Dec. 3. The reading is down 0.1 months from November 2023.

Backlog in the infrastructure category contracted in November, though it is still the only category with higher backlog on a year-over-year basis.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in November. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Contractor confidence surged in November even though backlog was unchanged for the month," said ABC Chief Economist Anirban Basu. “This sudden improvement in confidence reflects increased policy certainty in the wake of November’s presidential election, and contractors are optimistic about the prospect of falling borrowing costs over the next several quarters. Though backlog contracted in the commercial and institutional and heavy industry categories last month, contractors expect increased activity in privately financed segments during the next six months.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.