The Associated Builders and Contractors Construction Confidence Index reached a post-recession high in the first half of 2014, and the continued recovery indicates a positive outlook for nonresidential construction, going into 2015.
According to a press release from the industry trade association, confidence increased across all three indices – revenues, profit margins and hiring, and all were up roughly 5%, compared with the first half of 2013.
“A number of factors are aligning to boost the performance of the nonresidential construction industry and the confidence of construction business owners,” said ABC Chief Economist Anirban Basu. “August notwithstanding, employment growth has been solid, including in segments such as professional/business services and leisure/hospitality, which in turn is helping to trigger new construction in office and lodging segments. The industry’s confidence has also been boosted by low interest rates, easing credit conditions for developers, expanded consumer spending and stabilizing state and local government revenues, which in many cases is attributable to a combination of higher retail sales and property tax revenue.
“While industry momentum has improved with the weather and the current survey indicates that the pace of progress will continue to accelerate into 2015, do not expect a boom,” cautioned Basu.