WASHINGTON, Sept. 15—Associated Builders and Contractors reported today that its Construction Backlog Indicator rebounded to 8.0 months in August, an increase of 0.2 months from July’s reading, according to an ABC member survey conducted Aug. 20-Sept. 1. The August backlog is a half-month lower than in August 2019.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels expectations all increased in August. Sales expectations rose above the threshold of 50, indicating expectations of expansion over the next six months. Contractors expect their profit margins to shrink during that time period, but are more optimistic compared to July. Staffing level expectations increased, with only 23% of contractors expecting to cut positions during the next six months.
• The CCI for sales expectations increased from 47.2 to 53.0 in August.
• The CCI for profit margin expectations increased 42.7 to 47.8.
• The CCI for staffing level expectations increased 50.6 to 54.4.
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.