ABC: Construction Backlogs Stable, Confidence Ebbs
Key Highlights
- Construction backlogs held steady at 8.5 months in September, among ABC members;
- Data center projects still key drivers;
- All confidence index components remain above 50, indicating positive growth expectations;
- Despite employment and spending decreases, contractor confidence and backlog remain stable among ABC members.
PRESS RELEASE
WASHINGTON, Oct. 14 — Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.5 months in September, according to an ABC member survey conducted Sept. 22 to Oct. 6. The reading is down 0.1 months since September 2024.
- View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for September. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Over the past year, backlog has declined in the commercial and institutional and heavy industrial categories, while it has increased substantially in the infrastructure category.
ABC’s Construction Confidence Index reading for sales declined in September, while the readings for profit margins and staffing both increased. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Falling industrywide employment, a dearth of job openings and ongoing decreases in construction spending have not diminished ABC contractor member backlog or confidence,” said ABC Chief Economist Anirban Basu. “This stability primarily stems from two sources. First, public sector activity has held up far better than its private counterpart, and that is supporting elevated backlog in the infrastructure category.
“The second source of industry momentum is, unsurprisingly, data centers,” said Basu. “Approximately 1 in 5 contractors was under contract to work on a data center project in September. While that’s a slightly lower share than in August, contractors that have data center work had significantly higher backlog (12.0 months) than those who did not (8.0 months).”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
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Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.