The Associated Builders and Contractors Construction Backlog Indicator declined to 8.7 months in March but is still 0.4 months higher than a year ago.
The indicator, based on an ABC member survey conducted March 20 to April 3, is at its lowest level since August 2022. Every region except the South reported improvement.
“The deceleration in nonresidential construction activity may have started,” said Anirban Basu, chief economist, in a statement. “With widespread fears of recession, credit conditions tightening, and more decision-makers turning their attention to cost containment, new construction work may be more difficult for contractors to line up.
“While the confidence and backlog data weakened in March, they indicate a slowing of activity rather than a shift into reverse,” Basu said. “There is a widely held view that financial conditions are tightening in the aftermath of the failures of Silicon Valley Bank and Signature Bank. To the extent that this is true, one could anticipate further slowing and less industry confidence during the months ahead.”
Source: Associated Builders and Contractors
