ABC Construction Backlog Indicator Rebounded in February
Key Highlights
- Construction backlog increased to 8.1 months in February, with regional growth concentrated in the Middle States;
- Sales expectations remain positive, but profit margins and staffing levels face pressure from rising costs and geopolitical tensions;
- Data center construction maintains a longer backlog, indicating sustained demand in that sector;
- Rising oil prices and material costs could dampen contractor optimism and hiring plans in the coming months;
- Despite challenges, all confidence index components remain above 50, signaling potential growth over the next six months.
WASHINGTON, March 10 — Associated Builders and Contractors (ABC) reported today that its Construction Backlog Indicator rose to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 6. The reading is up 0.1 months from January but down 0.2 months from February 2025.
View the full Construction Backlog Indicator and Construction Confidence Index data series.
Backlog increased sharply during February in the Middle States: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Notably, the Middle States is the only region with higher backlog than one year ago.
ABC’s Construction Confidence Index readings for sales and staffing levels increased again in February, while the reading for profit margins fell. Sales expectations are better than they were one year ago, while profit margin and staffing expectations are slightly worse. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog bounced back from January’s four-year low, yet it remains subdued by historical standards,” said ABC Chief Economist Anirban Basu. “It’s notable that backlog growth has been confined to the Middle States region. After struggling in the immediate aftermath of the pandemic, the Midwest has posted surprisingly strong population and economic growth over the past year, and that growth has clearly translated into increased levels of construction activity.
“Contractors under contract to work on data centers (11.2 months) continue to have significantly longer backlog than those who are not (7.6 months),” said Basu. “While data center work should continue apace over the next few quarters, the conflict in Iran, which began during this middle of this month’s CBI survey period, may suppress demand for other forms of construction work due to elevated materials prices, borrowing costs and uncertainty.
“While contractors remain slightly optimistic that their profit margins will expand over the next six months, that confidence may not survive the recent and precipitous increase in oil prices,” he added. “Rising input costs, if persistent, could weigh on hiring expectations, which were particularly upbeat in February. The CCI series for staffing level expectations rose to the highest level since March 2025.”
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Associated Builders and Contractors (ABC) 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 offer a robust employee value proposition, 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.