Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.4 months in October, based on a member survey. The figure is down slightly from September and the same as that in October 2024.
Backlog held steady or increased across the three major industries tracked in the survey. However, contractors that do not primarily operate in a single sector — often smaller firms — saw backlog drop sharply to 5.8 months.
ABC’s Construction Confidence Index showed flat expectations for sales in October, while confidence in profit margins and staffing levels declined. All three measures remained above 50, indicating respondents still anticipate growth over the next six months.
“Nearly 65% of contractors indicated that they think the U.S. construction industry is contracting,” said ABC Chief Economist Anirban Basu. He noted that the latest figures reflect the lowest backlog since May, alongside a growing share of contractors — 23% — who expect sales to decline. Basu said much of the industry’s current activity is supported by manufacturing projects and a strong data center sector. Contractors working on data centers reported significantly higher backlog, at 10.9 months, compared with 8.0 months for those that are not.
