Some construction industry leaders were less optimistic in April amid tariff-related project delays and cancellations, according to Associated Builders and Contractors.
Two of the three components of ABC’s Construction Confidence Index fell for the month, but all three were above the diffusion index threshold of 50.
In April, ABC’s Construction Confidence Index increased from 52.7 to 53.1 for profit margin expectations; fell from 64.2 to 62.6 for staffing levels; and fell from 62.6 to 62.1 for sales expectations.
Additionally, ABC’s Construction Backlog Indicator rose from 8.5 months in March to 8.7 months in April, hitting a 20-month high and increasing 0.3 months from April 2024.
“Nearly 22% of contractors had a project delayed or canceled in April due to tariffs, up from 18% in March, while 87% have been notified of tariff-related materials prices increases,” said ABC Chief Economist Anirban Basu. “Contractors remain busy despite these headwinds; backlog rose in April and is now at the highest level since September 2023. While ABC members remain upbeat about the near-term outlook, the share of respondents that expect their sales to decline over the next six months rose to 19% in April, up 6 percentage points since the start of the year.”
