Q3 09 CONFINDEX reading from the Construction Financial Management Association indicates construction conditions are beginning to stabilize
Based on the latest CONFINDEX reading (Q3 09) from the Construction Financial Management Association (CFMA), Princeton, N.J., construction conditions are beginning to show signs of stabilization. Jumping slightly — from 89 to 91 — since the Q2 reading in June 2009, the latest numbers demonstrate modest improvement, although the index remains in negative territory since the fourth quarter of 2008. Noteworthy to this latest quarterly reading is the fact that the Financial Conditions and Current Confidence sub-indices, which include general business conditions, availability of bank credit, bonding credit, and total backlog, are projecting 2010 expectations to be positive. CONFINDEX was launched last year as a proprietary construction industry assessment by 200 randomly chosen CFOs in the commercial construction sector. Released quarterly, it's comprised of eight elements used to calculate a net score of confidence, including the state of construction industry conditions and total backlog as well as availability of bank credit, bonding credit, and working capital. It's made up of four sub-indices, including business conditions, financial conditions, current confidence, and outlook for the next year. The next reading is scheduled for release in December 2009.