PORTLAND, Maine — BlueTarp Financial, a credit management company for B2B suppliers, has released its Q3 2017 Building Supply Index. The Q3 2017 index value rose to 134.14 from 126.52 in Q3 2016 – the highest on record since tracking began in 2008.
To interpret the index, values below 100 reflect recessionary or recovering performance. Values above 100 reflect healthy economic activity. Similar to the last quarter’s index, building permits and construction spend saw a slight increase, but consumer confidence continues to be the main driver for the elevated index level.
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. While consumer confidence remains high, long-term contractor sentiment saw a decline this quarter due to uncertainty in the marketplace. This quarter, 11.7% fewer contractors reported a favorable outlook compared to Q2 2017.
“Consumer confidence and increase in construction spend is driving the index to all-time highs,” said Scott Simpson, president and CEO of BlueTarp. “We continue to see elevated delinquency levels warranting careful monitoring, but held steady this last quarter.”
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 spend and consumer confidence as reported monthly by the Census Bureau and The Conference Board.