ABC’s Construction Backlog Indicator is the only economic indicator that reflects the amount of work that will be performed by commercial and industrial construction contractors in the months ahead. The Construction Confidence Index is a diffusion index that signals construction contractors’ expectations for sales, profit margins and staffing levels. View the methodology for both indicators. 


WASHINGTON, D.C., MARCH 29— Expectations for 2017 have become less optimistic, but the majority of industrial and commercial construction contractors still expect growth this year, according to the latest Associated Builders and Contractors (ABC) Construction Confidence Index (CCI). Although all three diffusion indices in the survey — profit margins, sales and staffing levels—fell by more than five points, they remain well above the threshold of 50, which signals that construction activity will continue to be one of the few significant drivers of economic growth.

The latest survey revealed that:


  • The CCI for sales expectations fell from 65.1 to 59.7;
  • The CCI for profit margin expectations fell from 61.1 to 56;
  • The CCI for staffing levels fell from 64.9 to 59.5.


CCI is a diffusion index.  Readings above 50 indicate growth, while readings below 50 are unfavorable.  The following chart reflects the distribution of responses to ABC’s most recent surveys.

“There may be a period during which the pro-business agenda being forwarded in Washington, D.C., will significantly impact construction firm expectations,” said ABC Chief Economist Anirban Basu. “In fact, many construction executives have become more confident, including those who would stand to benefit most directly from an infrastructure package. However, there is a realization among construction firms that, if implemented, many of these pro-business initiatives would begin impacting the economy beyond the six-month timeframe built into ABC’s construction confidence survey.

“Despite an ongoing dearth of public construction spending growth, certain construction segments have experienced significant expansion over time, including office, hotel, healthcare and multifamily segments,” said Basu. “This helps explain why more than 60 percent of respondents expect their sales to rise during early 2017 and the same number expect staffing levels to rise.

“Respondents from Florida and other rapidly growing states are reporting significant shortages of appropriately skilled workers, which is helping to drive compensation costs higher,” said Basu. “This helps explain why fewer than half (48 percent) of respondents now expect profit margins to climb. That is down from 54 percent from the previous CCI, supporting the proposition that the construction skills shortfall has worsened over the past six months.

“For now, confidence appears to be supported less by policymaking than by the ongoing momentum of the U.S. construction industry,” said Basu. “Going forward, confidence is likely to depend more intensely on the new administration’s capacity to move its pro-business agenda from theory to practice.”

The following chart reflects the distribution of responses to ABC’s most recent surveys.

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020. All previously reported quarters and months shifted forward by one period to better reflect the timing of when the surveys were conducted. 

ABC construction economic releases are published according to this schedule in 2023

For media inquiries, please contact Erika Walter, ABC director of media relations, at [email protected].

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