Construction Backlog and Confidence Fall in October, Reports Advocacy Group

WASHINGTON — Associated Builders and Contractors, a national construction industry trade association representing over 23,000 members across the United States, has reported that its Construction Backlog Indicator fell to 8.4 months in October, according to a member survey conducted Oct. 20 to Nov. 4. The reading is down 0.1 months since September but unchanged from October 2024.

Backlog was flat or increased on a monthly basis in each of the three industries considered in this survey. Backlog for respondents that do not primarily operate in any one industry—generally the smallest contractors responding to the survey—fell sharply for the month and stands at just 5.8 months.

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

“Nearly 65% of contractors indicated that they think the U.S. construction industry is contracting, according to ABC’s October survey,” said ABC Chief Economist Anirban Basu. “This dismal assessment accompanied the lowest backlog reading since May, and 23% of contractors expect their sales to decline over the next six months, the highest share in over a year. These findings are consistent with an industry that is sustained by still-elevated manufacturing construction and a surging data center sector. Approximately 1 in 7 contractors are under contract to work on data centers, and those contractors have significantly higher backlog (10.9 months) than those that are not (8.0 months).”

To learn more, visit abc.org.