Construction Backlog Indicator of ABC remains unchanged in October

Construction Backlog Indicator of ABC remains unchanged in October

Associated Builders and Contractors (ABC) released the details of its Construction Backlog Indicator. They made the announcement that their Construction Backlog Indicator remained unchanged in October. The indicator virtually unchanged at 8.2 months as only +0.2% change occurred as compared to September’s reading.

Anirban Basu, the chief economist of ABC, said, “Many would consider a flat reading on the backlog as a nonevent, yet nothing could be further from the truth.” The market is facing a lot of uncertainties including the weakening world economy, the political instability from Washington, trade war, and volatility of financial markets. Basu made a point, “The fact that backlog did not decline is significant in terms of the current market conditions.”

It is a tough task for the decision-makers as there are so many uncertainties all around. The commercial construction categories indicated weakness. The rise of the short-term interest rate by the federal government nine times from December 2015 to December 2018 is one of the reasons behind the weakness. The cost of capital has been raised due to the rise in the interest rate.

It is hard for commercial projects to move forward under this condition. In 2019, the Federal Reserve lowered the interest rate three times. The backlog expanded in October and the lower cost of capital was the main reason behind this expansion. Basu said that the decline of the backlog in the heavy industry was due to trade disputes.

Basu added that infrastructure backlog also declined during October and it usually tended to vary month to month. He said that the infrastructure backlog would smooth in the upcoming time as the US economy had the lengthiest expansion in history. This expansion of the economy will help the infrastructure backlog to rise. Overall, the Construction Backlog Indicator remained unchanged in October as compared to September.

Managing editor of the Chicago Morning Star

Related Posts
In there is a default, what happens to Social Security checks?
The debt ceiling talks in Washington have Phoenix retiree Saundra Cole following the news with
In a recent poll, 50% of respondents supported arming Ukraine
Half of the respondents in a new poll said they support the U.S. sending weapons
In the US, Chicago City Council presently has the most LGBTQ members
With the swearing in of nine openly LGBTQ council members on Monday, Chicago’s new city
When it comes to railroad safety, America is off the mark
Last week, an Amtrak train derailed at Union Station in Chicago. The same week, a freight
The ‘zombie drug’ xylazine’s atrocities, rocking Chicago and New York
These days, drug use in Washington Square Park in New York is a pretty open
Patrick Beverley Makes Fun of LeBron James Following His Startling Injury Comeback
After missing 13 games and raising concerns that he might be sidelined for the remainder
The $3 trillion in deficit reduction under Biden’s budget: It’s still insufficient
In his budget proposal for FY 2024, President Biden pledges to cut future deficits by
An individual from Rockford was given a 10-year prison sentence for robbing banks in Rockford and Belvidere
ROCKFORD — A federal judge has sentenced a Rockford man to a total of 10
Before she passed away, a woman who was stabbed on a Chicago train platform identified her assailant
Samantha Maldonado, 26, was stabbed repeatedly on the Chicago Transit Authority’s Adams and Wabash platform.
Police in Naperville urge locals to observe St. Patrick’s Day responsibly
The Naperville Police Department is participating in a statewide enforcement campaign to crack down on