Construction industry leaders were less confident in August, according to Associated Builders and Contractors.
All three components of ABC’s Construction Confidence Index decreased for the month, and one fell below the diffusion index threshold of 50.
In August, ABC’s Construction Confidence Index decreased from 50.6 to 49.1 for profit margin expectations; from 57.4 to 53.8 for sales expectations; and from 58.8 to 56.4 for staffing levels.
Additionally, ABC’s Construction Backlog Indicator fell from 8.4 months in July to 8.2 months in August, which is down 1.0 months from August 2023.
“As predicted, confidence among contractors is slipping,” said ABC Chief Economist Anirban Basu. “While ABC contractor members are still anticipating expanding sales and employment, profits margins are increasingly under pressure as project owners face high borrowing and construction delivery costs in the context of a slowing economy. Many projects have been postponed, resulting in recent backlog declines, most notably in the South.”
