Given that the construction industry is a trailing economic indicator, industry executives are keenly aware of the state of the American economy. With recent news full of gloom, from consistently high unemployment rates to gridlock in Washington over raising the debt ceiling, industry confidence in the economy has taken a nosedive, reducing optimism that the construction market will recover any time soon.
This bleak view of the markets' immediate future is reflected in the most recent ENR Construction Industry Confidence Index survey. For the third quarter of 2011, the CICI plummeted to 37 on a scale of 100, down nine points from 46 in the last quarter and down 14 points from the first quarter, when the rating stood at 51, an indicator of a stable market. This slide brings the CICI far below 50, indicating the belief that the market still is in recession. The 664 executives of large construction and design firms responding to the survey believe the market still has a way to go before recovery takes hold.