Associated Builders and Contractors reported that its Construction Backlog Indicator rose to 8.4 months in November, according to an ABC member survey conducted Nov. 19 to Dec. 3.
The reading is up 0.3 months from October 2021 and 1.2 months from November 2020.
“It’s getting better out there,” ABC Chief Economist Anirban Basu said. “While the outlook for construction remains imperfect, extraordinarily low interest rates have created enough appetite for deal-making to push backlog higher and persuade the average contractor that sales, employment and profit margins will climb over the next six months.
“Optimistic expectations are a testament to how strong deal flow remains in stimulus-driven America,” said Basu. “The infrastructure package passed in November is another reason for optimism, particularly for contractors who work in segments like roads and bridges, water and sewer and mass transit. It is likely that industry circumstances will improve further in 2022, especially if supply chain disruptions and input shortages become less severe, which many economists anticipate by the second half of next year.”