2021 CIRT Sentiment Index: Fourth Quarter Report
Though scores remain near historical highs, fourth quarter results indicate the first signs of softness in sentiment in more than a year. Both design and construction scores retreated from last quarter’s highs, as optimism subsided against a variety of headwinds, including a large surge in coronavirus activity, escalating supply chain and labor constraints, and overall higher prices.
The Sentiment Index fell slightly to 74.9 from a high of 79.7 last quarter. The Design Index followed trend, declining to 83.4 from its prior high of 86.8. Though most (6 out of 8) of the index components realized some decline, the largest correction was tied to wavering confidence in the overall U.S. economy, with the component score tumbling to 64.71 from 84.56 (-23%). Other notable declines include weakened expectations toward the local economy where respondents are doing business and the overall nonresidential sector. Cost of labor is the only component score that saw an increase – 97.06 from 94.85.
Download our report to see the full insights from our fourth quarter CIRT survey.
