Construction industry leaders were more confident in October, according to Associated Builders and Contractors.
Two of the three components of ABC’s Construction Confidence Index increased for the month, and all were above the diffusion index threshold of 50.
In October, ABC’s Construction Confidence Index increased from 58.1 to 59 for sales expectations and from 58.2 to 58.6 for staffing levels. The index fell from 50.9 to 50.8 for profit margin expectations.
Additionally, ABC’s Construction Backlog Indicator fell from 8.6 months in September to 8.4 months in October, which is unchanged from October 2023.
“While backlog declined in October, it remains at a healthy level and has been remarkably stable over the past year,” said ABC Chief Economist Anirban Basu. “Like much of the economy, the construction industry remained in some semblance of a holding pattern in October as project owners continue to wait for election outcomes and for interest rates to decline further. Despite this wait-and-see attitude, contractors remain upbeat about the next two quarters. Approximately 53% of ABC members expect their sales to increase over the next six months, while just 22% expect them to decline.”
