Easing Inflation, Potential Rate Cuts Boost Backlog
July 10, 2024
Construction backlog moved up to 8.4 months in June, a 1.2% gain from the month prior, according to a Tuesday release from Associated Builders and Contractors. The small growth in June marks a reversal from a slight 1.2% drop in May. However, the overall backlog level remains 0.5 months below June 2023, or about a 5.6% decrease. “Backlog continues to hold up remarkably well despite high interest rates, inflation and emerging weakness in the broader economy,” said Anirban Basu, ABC chief economist. “While contractor confidence regarding the outlook for sales and staffing levels fell modestly in June, all three Construction Confidence Index components are higher than they were a year ago.”
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