Infrastructure projects posted the only gain in backlog in November, adding about a month’s worth of work. For contractors outside of the infrastructure scope, though, backlogs have taken more of a hit.
“A growing number of contractors are reporting declines in backlog,” said Anirban Basu, ABC chief economist. “The interest rate hikes implemented by the Federal Reserve appear to be making more of a mark on the economy. Not only has the cost of capital risen over the past 20 months, but credit conditions are also tightening, rendering project financing even more challenging.”
