Construction Backlog Slips in October as Contractor Confidence Declines

WASHINGTON — Associated Builders and Contractors reported that construction backlog declined to 8.4 months in October, according to a member survey conducted from Oct. 20 to Nov. 4. The backlog is down 0.1 months from September and is unchanged compared to October 2024.

Backlog levels were stable or improved across the three primary industries tracked in the survey. The most significant decline came from respondents that do not primarily operate in a single industry category, a group that ABC identifies as generally consisting of smaller contractors. Backlog for those firms dropped sharply to 5.8 months.

ABC also released its Construction Confidence Index for October. Confidence in sales remained consistent with the prior month, while expectations for profit margins and staffing declined. All three measures remained above 50, indicating anticipated growth over the next six months.

According to ABC Chief Economist Anirban Basu, nearly 65% of contractors surveyed believe the U.S. construction industry is contracting. The survey also found that 23% of respondents expect sales to fall over the next six months, the highest share in more than a year. Basu noted that current levels of activity are supported by elevated manufacturing construction and strong demand in the data center sector. Survey data shows that about one in seven contractors are under contract to work on data centers, and those firms report significantly higher backlog at 10.9 months compared to 8.0 months for firms not involved in that segment.

ABC maintains the Construction Backlog Indicator to quantify the previous month’s work under contract, while the Construction Confidence Index measures sales, profit margin, and staffing expectations for the next six months.