Construction industry leaders remained optimistic in January, according to Associated Builders and Contractors.
Two of the three components of ABC’s Construction Confidence Index increased for the month and all three were above the diffusion index threshold of 50.
In January, ABC’s Construction Confidence Index increased from 64.2 to 64.5 for sales expectations and from 54.3 to 56.1 for profit margin expectations. The index fell from 63.2 to 62.8 for staffing levels.
Additionally, ABC’s Construction Backlog Indicator rose from 8.3 months in December 2024 to 8.4 months in January, which is unchanged from January 2024.
“While backlog has remained within a narrow range over the past year, contractors broadly expect construction activity to pick up over the next six months,” said ABC Chief Economist Anirban Basu. “Contractor confidence regarding sales has improved significantly over the past year, with much of that improvement occurring since November’s election. The fact that staffing level expectations remain elevated suggests that job openings, which fell sharply during the final months of 2024, should rebound during the first half of 2025.”
