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) plunged from 74 in Q1 to 56 in Q2. Two of the index’s three main indicators—confidence in new business and revenue expectations—both fell 26 points, to 50 and 44, respectively, revealing the severe impact of the coronavirus pandemic on the construction industry.
Key Drivers of Contractor Confidence
Backlog
The ratio of average current and ideal backlogs dropped 3 points to 73 in Q2. Impact to backlog from the current crisis may lag several months as projects are delayed.
Revenue
Revenue numbers also dropped considerably, down 26 points to 44 in Q2, as many contractors saw projects deferred, canceled or temporarily shut down.
Confidence
Contractors’ confidence in the ability of the market to provide new business in the next 12 months dropped to 50, demonstrating concern about the pipeline of work.
