September 2010 CONFINDEX Reading

Current CONFINDEXTM reading is 106, a slight decrease from June’s 108 reading. Interestingly, this is the third  successive reading over the critical 100 mark representing a reading in positive or cautiously optimistic territory. This current reading also represents a 34% jump from the initial reading of 79 from December 2008.

 All four sub-indices that shape the overall CONFINDEXTM reading are down slightly from their June 2010 readings with the biggest drop of 4% coming the Business Conditions sub-index. This subindex fell from 115 to 110.

 The year ahead sub index (2011 Outlook Index) fell slightly from 127 in June to September’s 124, representing a 2% drop, and a reading about equal to the March 2009 reading of 123.

Availability of bonding credit retreated further in September, 2010 with an even 100 score versus a 102 reading in June and down from a high of 105 recorded in March, 2010.

The Current Confidence Index, measuring conditions as of today, dipped from 89 in June to September’s reading of 87, but still significantly higher than the level of 62 recorded at this same time in 2009.

 Any index >100 reflects more positive responses than negative; while any index <100 reflects more negative responses than positive.

Copyright © 2010 by the Construction Financial Management Association (CFMA). All rights reserved. This report first appeared in September 2010 on CFMA.org.

About the Author

Anirban Basu

Anirban Basu is Chairman & CEO of Sage Policy Group, Inc., an economic and policy consulting firm in Baltimore, MD. He is one of the Mid-Atlantic region’s most recognizable economists in part because of his consulting work on behalf of such clients as prominent developers, bankers, brokerage houses, energy suppliers, and law firms.

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