BlueTarp Financial reports that its Q4 2017 Building Supply Index value rose to 130.52 from 122.23 in Q4 2016. This is the highest value on record since tracking began in 2008.
While the index reflects seasonal dips in construction spending and building permits, these categories continue to show growth over the same period last year. Consumer confidence continues to be the main driver for the elevated index level, according to the Index, showing another 4.5 percent increase over the previous quarter.
As a supplement to the Building Supply Index, BlueTarp conducts a quarterly survey of its contractors to gauge sentiment on the current and future state of the economy. This quarter, they survey found contractor sentiment rose by 14 percent. Contractors indicated they are encouraged by bi-partisan collaboration, pro-business decisions and strong customer spending.
“The index has reached its highest value over the last 10 years. There is no denying times are good right now,” Scott Simpson, president and CEO of BlueTarp, asserts. “Contractors expect this to continue or be further bolstered by the tax legislation.” However, Simpson remains concerned that delinquencies continue to quietly inch upward.
The report represents trends from 120,000 pro customers and more than 2,000 building material suppliers across the United States. It also incorporates macro-economic drivers including: building permits, construction spending and consumer confidence as reported monthly by the Census Bureau and The Conference Board.