Contractors are Highly Confident as Revenues Shift Upward
USG Corporation + U.S. Chamber of Commerce Index
The Commercial Construction (CCI) Index rose three points in Q3 2019 to 77, the highest score since the index was first released in Q2 2017. Market trends reinforce the other indicators of high confidence, with expected increases in spending on tools and equipment, and consistent access to financing for the industry.
Key Drivers of Confidence
In Q3 2019, all three key drivers of the index—revenue, backlog and confidence in new business—performed well, with revenue showing the most dramatic growth.
-The ratio between the average current and ideal levels of backlog remained at a high of 82 quarter-over-quarter, demonstrating that contractors continue to enjoy a robust level of backlog.
-Confidence in new business rose by two points to 76, showing that contractors expect the near-term construction market to remain strong.
-For the first time in over a year, the revenue component increased. Revenue expectations climbed sharply by six points, from 66 to 72.
