Optimism Growing Among Construction Industry CFOs
The Construction Financial Management Association (CFMA) periodically publishes its “Key Industry Financial Indicators” as a means of identifying, measuring, and benchmarking key trends in the construction industry.
One of the indicators reported by the CFMA is the CONFIDEX survey. According to the CFMA’s website, the “CONFIDEX is the CFMA’s proprietary confidence index survey of CFOs in the commercial construction sector” and is “a leading economic indicator of the health of commercial construction in the US”.
According to the CFMA’s 1st quarter report, the current CONFIDEX score is 129. This score represents a 15 point increase over 4th quarter 2012 and a 3 point increase over 1st quarter 2012. (As a point of reference, a score of less than 100 indicates pessimism among the 300 randomly selected CFO participants. Conversely, a score of 100 or more indicates optimism among the survey participants).
This positive outlook may be seen as surprising considering the economic fears of the last quarter (i.e. instability in Europe, recent tax law changes, and uncertainty regarding the “fiscal cliff”). Despite these fears, according to the report, “U.S. economic growth is accelerating and construction’s recovery is firming” and “the pace of construction employment expansion has picked up in recent months”.
For a full listing of the CFMA’s Key Industry Financial Indicators and their accompanying reports, please visit the “Industry News & Advocacy” section of the CFMA’s website at https://www.cfma.org.
Please continue to visit our blog for additional updates and insight into the CFMA’s Key Industry Financial Indicators.