Construction Confidence into 2020 Looks Optimistic
Confidence among construction contractors did not waiver during the end of 2019 and into the beginning of 2020, according to recent index results released by Associated Builders and Contractors (ABC). The index spiked in November then remained steady in December.
Several variables remained above the growth expectations threshold in December 2019: sales expectations, profit margins and staffing levels remained high. For the first half of 2020, 70% of contractors expect their sales to increase; about 50% expect profit margins to increase. Conversely, about 12% expect margins to decline in the first half of 2020.
"The U.S. economy is humming, and among the principal beneficiaries of that performance are nonresidential contractors," said ABC Chief Economist Anirban Basu. " ... Recently released data regarding construction spending and hiring in the U.S. strongly suggest that this confidence is justified."
—Christie Citranglo, editorial associate