Dive Brief:<\/h3>\n\n- Construction backlog increased to 8.4 months<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in January, reversing December\u2019s slight decline, according to an Associated Builders and Contractors survey conducted from Jan. 21 to Feb. 3. The metric tracks the volume of work in builders\u2019 pipelines.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n
- The Western region posted the largest backlog growth, both on a monthly and year-over-year basis, while the South maintained the longest backlog at 9.5 months, despite seeing the steepest decline over the past year.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n
- Contractor confidence remained strong, with sales and profit margin expectations rising, though staffing level expectations fell, according to ABC.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n
Dive Insight:<\/h3>\n
The backlog increase in January reflects continued <\/span><\/span><\/span><\/span><\/span><\/span>stability in construction activity<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> as contractors enter 2025, said Anirban Basu, ABC chief economist, in the release.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cWhile backlog has remained within a narrow range over the past year, contractors broadly expect construction activity to pick up over the next six months,\u201d said Basu. \u201cContractor confidence regarding sales has improved significantly over the past year, with much of that improvement occurring since November\u2019s election.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n![\"-\"](\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcwdw6iOWqDY_sAYFjqdzYiToJJg2xKQKBj6aWLfi-MKbdXqOUuC4OyXODqoDJmixt_CN0pNcQmva4FOejJX2QcKRezgmtco5krACLXIQiEnWmR8aYpebcQL59sgTmAuvVf5dH4sQ?key=0kywxkOdqyb_K7C798Z2Ej9O\")
<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nThough confidence in sales and profit margins continues to stay strong, the dip in staffing expectations comes after a <\/span><\/span><\/span><\/span><\/span><\/span>sharp decline in job openings<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in late 2024. Open construction jobs fell by 55,000 to 217,000 in December compared to November, according to Bureau of Labor Statistics data.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nBasu noted, however, that all three readings remain above ABC\u2019s threshold of 50, indicating expectations for growth over the next six months. That means hiring demand could bounce back sooner rather than later.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cThe 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,\u201d said Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n
Dive Insight:<\/h3>\n
The backlog increase in January reflects continued <\/span><\/span><\/span><\/span><\/span><\/span>stability in construction activity<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> as contractors enter 2025, said Anirban Basu, ABC chief economist, in the release.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWhile backlog has remained within a narrow range over the past year, contractors broadly expect construction activity to pick up over the next six months,\u201d said Basu. \u201cContractor confidence regarding sales has improved significantly over the past year, with much of that improvement occurring since November\u2019s election.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Though confidence in sales and profit margins continues to stay strong, the dip in staffing expectations comes after a <\/span><\/span><\/span><\/span><\/span><\/span>sharp decline in job openings<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in late 2024. Open construction jobs fell by 55,000 to 217,000 in December compared to November, according to Bureau of Labor Statistics data.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Basu noted, however, that all three readings remain above ABC\u2019s threshold of 50, indicating expectations for growth over the next six months. That means hiring demand could bounce back sooner rather than later.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cThe 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,\u201d said Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n