• The CCI for sales expectations increased from 68.4 to 70.0 in May.
• The CCI for profit margin expectations fell slightly from 63.0 to 62.8.
• The CCI for staffing levels fell from 67.4 to 66.8.

“While there continues to be considerable chatter regarding a slowing economy, the need for federal rate cuts and the damaging effects of ongoing trade disputes involving the United States, China, the European Union and India, among others, nonresidential firm leaders continue to expect further construction spending growth,” says ABC chief economist Anirban Basu. “Recent data regarding job growth and consumer spending indicate that any economic slowing to date has been mild and that the expansion is set to endure for the next few quarters.

“While profit margin expectations and staffing levels measures declined slightly in May, they remained well above the threshold level of 50,” says Basu. “More importantly, these CCI measures likely declined due to economic strength rather than weakness. Firms continue to scramble for talent in the context of an economy offering more job openings than job seekers. As a result, staffing levels cannot rise rapidly even in the context of elevated demand for workers, and profit margins are negatively impacted by the accompanying rapid rise in compensation costs. However, far more industry leaders expect profit margins to rise than decline."

View the complete Construction Confidence Index at abc.org.