Construction Confidence Rebounds in Second Quarter

Industry News / Market Forecast

Construction Confidence Rebounds in Second Quarter

The Commercial Construction Index (CCI), which track contractor confidence, rose two points in the second quarter of 2019 (2Q19), following a three point drop in the first quarter (1Q19) survey. In the second quarter, CCI stood at 74, up from 72, which was the lowest survey level since its inception in 2017. USG Corp. and the U.S. Chamber of Commerce co-produce the quarterly survey. Respondents reported a record-high average project backlog of 10.3 months, up from 9.7 months in the (1Q19) report. Report authors suggested that the increased backlog could be the result of the labor shortage. In the survey, almost 95 percent of contractors reported difficulty in finding qualified workers. More half of the respondents expect the construction market to remain strong over the next 12 months; among large contractors, more than 70 percent were optimistic about market conditions. About 30 percent of respondents anticipate improved profit margins over the coming year. To read the full report, click here. All comments to blog posts will be moderated by ACEC staff.