Cci q1 2019 3 12 2019 for release 0
March 14, 2019
The USG + U.S. Chamber of Commerce Commercial Construction Index (CCI) is a quarterly economic index designed to gauge the outlook for, and resulting confidence in, the commercial construction industry.
Recognizing a need to highlight the important contributions of this sector to the nation’s economy, USG Corporation and the U.S. Chamber partnered to produce this first-of-its-kind index.
Each quarter, contractors across the country are surveyed in order to better understand their levels of confidence in the industry and top-of-mind concerns.
The Commercial Construction Index (CCI) fell three points to the lowest level since the survey began in 2017. Conducted in the midst of the longest federal government shutdown in U.S. history, the survey may reflect increasing caution about a number of factors—the state of the economy, rising interest rates, concerns over material costs—or even the shutdown itself.
The final result is a Commercial Construction Index Score of 72.
Key Drivers of Contractor Confidence
The ratio between the average actual (9.7 months) and stated ideal (12.5 months) backlog is still strong at 77, even with the three-point drop from Q4 2018.
Contractors are more cautious about the market’s ability to provide new business opportunities in the next 12 months than at any time in the last two years.
Most contractors believe they will see revenue growth in the next 12 months, but the percentage is lower than in any quarter in 2018.