Construction industry leaders remained optimistic in February, according to Associated Builders and Contractors.
The three components of ABC’s Construction Confidence Index were mixed for the month, but all three were above the diffusion index threshold of 50.
In February, ABC’s Construction Confidence Index increased from 62.8 to 64 for staffing levels; was unchanged at 64.5 for sales expectations; and fell from 56.1 to 54.8 for profit margin expectations.
Additionally, ABC’s Construction Backlog Indicator fell from 8.4 months in January to 8.3 months in February, which is up 0.2 months from February 2024.
“While many other economic sentiment readings have deteriorated in recent months, contractors remain optimistic that business conditions will improve through the first half of 2025,” said ABC Chief Economist Anirban Basu. “Nearly 60% of contractors intend to increase their staffing levels over the next six months, the highest share in over two years. These hiring expectations suggest that the recent slowdown in industrywide employment is largely confined to the residential segment. Yes, there are some broader signs of emerging economic weakness, but the results of this ABC member survey suggests that contractors will remain busy over the next few quarters.”
