Confidence in the economy on the part of construction and contracting firms dropped by nearly 40 percent in the past three months, according to a survey by the International Profit Associates Small Business Research Board.
The IPA SBRB Construction/Contractor Confidence Index fell to 30.7 percent according to a poll released earlier this month, down from an index of 49.3 percent in May. The overall outlook from all small businesses was less pessimistic, with the Small Business Confidence Index dropping about 20 percent from 47.3 to 39.3 during the same three-month period.
Twenty-six percent of respondents said they had confidence in the general economy versus 48 percent in May. Still, 52 percent of construction and contracting firms said they estimate revenues for the year to match last year’s, with 40 percent saying they expected better revenues this year.
The cost of materials, energy and fuel costs, and taxes are cited by respondents as their three leading business concerns, with 25 percent citing material costs as primary, 15 percent naming energy and fuel costs, and 14 percent citing taxes.