WASHINGTON, Oct. 13—Associated Builders and Contractors (ABC) reported today that its Construction Backlog Indicator increased to 8.7 months in September, according to an ABC member survey conducted Sept. 21 to Oct. 5. The reading is up 0.2 months on both a monthly and yearly basis. 

View ABC's Construction Backlog Indicator and Construction Confidence Index for September. For historical results, view the full data series.

Commercial and institutional backlog, which dipped in the middle of 2026, rose to the highest level since July 2025. Heavy industrial backlog, while still up 0.5 months over the past year, fell to its lowest level since March.

ABC’s Construction Confidence Index reading for staffing increased in September, while the readings for sales and profit margins fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months. 

“Backlog increased for the second straight month in September as data center work continues to keep contractors busy,” said ABC Chief Economist Anirban Basu. “The 15% of ABC members under contract to work on data centers averaged 11.3 months of backlog in September, a full three months more than ABC members that are not. This disproportionately benefits the largest contractors; 39% of contractors with greater than $100 million in annual revenues have data center work right now compared to just 1 in 10 contractors with fewer than $100 million in annual revenues.

“At the same time, rising materials and labor and borrowing costs continue to put pressure on contractors,” said Basu. “More than 1 in 4 contractors expect their profit margins to contract over the next six months, the highest share since November 2025. Those same cost pressures have suppressed sales expectations, which also fell to an 11-month low in September.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.

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.

Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and 24,000 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. Visit us at abc.org.