Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator fell to 8.2 months in December, according to an ABC member survey conducted from December 16 to January 4. The reading is down 0.2 months from November 2021, but up 0.9 months from December 2020.
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in December. All three indices stand above the threshold of 50, indicating expectations of growth over the next six months.
“Demand for construction services in America remains strong,” said ABC chief economist Anirban Basu. “Contractors have been upbeat about sales and employment prospects for months. What changed in December is that a growing fraction of contractors now believe that profit margins will rise during the next six months despite rising costs due to labor shortages and volatile materials prices.”