Pros Remain Somewhat Optimistic Despite Slowed Activity

A score lower than 50 indicates that more firms reported a decrease in their recent business activity than reported an increase.

3. Recent business activity has decreased. The Recent Business Activity Indicator, which is related to project inquiries and new committed projects, dropped by 3 points, to 45, in Q1 2024, down from 48 in Q4 2023. This was driven by a 4-point decline in project inquiries, to 43, in Q1 (from 47 in Q4) and a 2-point decrease in new committed projects, to 48, in Q1 (from 50 in Q4).

For build-only remodelers, recent business activity decreased by 3 points, to 50, in Q1 (from 53 in Q4). Design-build remodelers also reported a 3-point decrease in recent business activity, to 40, in Q1 (from 43 in Q4).

The Recent Business Activity Indicator looks at actual activity over the previous three months. In contrast with the Expected Business Activity and Project Backlog indicators, which look forward in time, the Recent Business Activity Indicator looks back. It’s based on survey questions about whether businesses observed an increase, a decrease or no change in the actual number of project inquiries and new committed projects over the previous three months relative to the three months prior.

Source link