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SOURCE Construction Financial Management Association
Small Drop in Confidence is Evident in the 3rd Quarter
PRINCETON, N.J., Oct. 2, 2013 /PRNewswire-USNewswire/ -- The Construction Financial Management Association's (CFMA) Quarterly CONFINDEX™ Survey, sponsored by Viewpoint, dropped in September to 127, from 128 in June, showing construction CFO confidence is declining. CONFINDEX™ is CFMA's proprietary confidence index survey of CFOs in the commercial construction sector. It is the only confidence index survey asking the level of confidence from construction finance professionals in a critical industry of the US economy.
CFMA's Economic Advisor, Anirban Basu, said: "The current year will go down as yet another during which CFO confidence steadily slipped over the course of the spring and summer after beginning the year at a high level. According to the Q3:2013 CONFINDEX™ Survey, there was no significant improvement along any dimension of performance in the U.S. construction industry. Margins failed to thicken, business conditions modestly deteriorated, financial conditions flattened, and the outlook dimmed just a bit."
CONFINDEX ™ is based on a 200 point scale and includes four sub indices, all of which showed a mild decline since June. The Business Conditions Index fell 1.4%, Financial Conditions 1.7%, Current Confidence .8%, and the 2013 Year Ahead Outlook Index 1.5%. CFMA's CEO and President, Stuart Binstock added, "While the results this quarter show a slight downward trend, I fear things could be much worse if Congress does not pass a budget in the next few days. The construction industry thrives when there is a degree of certainty in the marketplace and that certainty will be hard to achieve so long as Congress continues to play chicken with the American economy."
The survey also asks respondents to rank their level of concern with challenges facing the industry in the upcoming year. In September vs. June, the number of people who were very or highly concerned about demand for construction dropped 4%, availability of financing for projects stayed level, public policy regarding construction dropped 18%, skills shortages was up 7%, and "a challenge not listed" was down 7%. Challenges that were brought up under "not listed" included Subcontractor financial stability, health care cost, and environmental and governmental concerns.
For a detailed analysis of the September CONFINDEX Survey, please click here. CONFINDEX is released quarterly. If you would like to be notified each time CONFINDEX is released, please email firstname.lastname@example.org.
CFMA is the only non-profit individual member organization in the world dedicated to serving financial professional in the construction industry. Established in 1981, it serves over 6,500 members in 88 chapters across the U.S. and Canada, publishes an award-winning business journal, CFMA Building Profits, and offers a variety of educational and professional development and connection programs through its chapter network, at its Annual Conference & Exhibition, and online education. CFMA Membership provides construction financial professionals with unique opportunities for industry networking, career development, and personal and professional growth. Visit www.cfma.org for more information.
Contact: Brigitte Meinders
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