WASHINGTON, DC — Related Builders and Contractors reported at this time that its Development Backlog Indicator elevated to eight.2 months in March from 8.1 months in February, in accordance with an ABC member survey performed March 20 to April 3. The studying is down 0.5 months from March 2023. 

Backlog is down over the previous yr for each area apart from the Center States, which now has the second largest backlog of any area. The South continues to have the most important backlog regardless of a big decline over the previous yr.

ABC’s Development Confidence Index readings for gross sales, revenue margins and staffing ranges elevated in March. All three readings stay above the brink of fifty, indicating expectations for progress over the following six months.

“Given headwinds comparable to excessive borrowing prices, rising provide chain points, undertaking financing challenges and labor shortages, the persistent optimism amongst nonresidential building contractors is astonishing,” mentioned ABC Chief Economist Anirban Basu. “Final month, contractors reported rising backlog and better conviction concerning possible progress in gross sales, employment and revenue margins.

“Whereas sure readings are under year-ago ranges, there was broad-based enchancment in March,” mentioned Basu. “For example, within the class of revenue margins, 32% of these surveyed in February anticipated enchancment over the following six months. That share rose to just about 34% in March, with solely 24% hinting at near-term margin compression. That signifies that although prices of delivering building companies proceed to rise, contractors collectively take pleasure in sufficient pricing energy to help steady to rising margins. If rates of interest start to say no in the course of the summer season as is broadly anticipated, confidence is prone to climb additional.”