Construction industry leaders were more confident in November, according to Associated Builders and Contractors.
All three components of ABC’s Construction Confidence Index increased for the month and were above the diffusion index threshold of 50.
In November, ABC’s Construction Confidence Index increased from 59 to 63.3 for sales expectations; from 58.6 to 62.5 for staffing levels; and from 50.8 to 55.3 for profit margin expectations.
Additionally, ABC’s Construction Backlog Indicator remained at 8.4 months in November, which is down 0.1 months from November 2023.
“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.”
