Related Builders and Contractors (ABC) reported at present that its Building Backlog Indicator fell to eight.4 months in Might, in keeping with an ABC member survey performed Might 20 to June 3. The studying is up 0.1 months since Might 2024, however down barely from 8.7 months in April.
Whereas the South maintains the longest backlog of any area at 9.4 months, it was the one one to expertise a decline in Might, down from 10.3 months in April. Solely the Northeast (8.7 months) has an extended backlog on a year-over-year foundation, up 1.7 months from Might 2024. Nevertheless, it skilled no change from April to final month. The Center States area (7.5 months in Might, up 0.3 from April) and West (7.5 months in Might, up 0.4 from April) have each seen slight backlog declines over the previous yr, at 0.1 months and 0.6 months, respectively.
ABC’s Building Confidence Index studying for revenue margins improved barely in Might to 53.3, whereas the readings for gross sales (62.1 to 60.4) and staffing (62.6 to 61.7) ranges fell. The readings for all three parts stay above the edge of fifty, indicating expectations for progress over the following six months.
“The impacts of tariffs are more and more obvious, with practically one in 4 ABC member contractors reporting tariff-related mission cancellations or delays in Might,” stated ABC chief economist Anirban Basu. “Whereas 87 % of survey respondents have been notified of tariff-related supplies value will increase, revenue margin expectations really improved in Might.
“In fact, this survey was largely performed earlier than the announcement of the now-implemented 50 % metal and aluminum tariffs, and margins will seemingly come underneath stress within the coming months,” stated Basu. “Regardless of this potential headwind, roughly six out of 10 contractors count on their gross sales to extend over the following two quarters, suggesting widespread optimism in regards to the outlook.”
