High interest rates have begun to take their toll on key construction industry measurements, said Richard Branch, chief economist at Dodge, in a press release shared with Construction Dive.
For example, the Architecture Billings Index, a forward-looking indicator for construction activity, dropped significantly in October after 20 months of positive growth. At the same time, the Associated Builders and Contractors’ backlog indicator, which tracks work construction firm’s have booked but haven’t yet begun, fell below its pre-pandemic reading from February 2020, largely due to a decline in the commercial and institutional category.
