Associated Builders and Contractors (ABC) reports its Construction Backlog Indicator rose to a 20-month high of 8.7 months in April, according to a member survey conducted April 22 to May 6. The reading is up 0.3 months since April 2024.
The backlog has increased significantly over the past year for contractors with greater than $100 million in annual revenues. While it has also risen modestly for the smallest contractors, it is down annually for those with $30 million to $100 million in annual revenues. Throughout the country, the backlog indicator is 7.2 in the Middle States (down from 7.4 in March and 7.9 last April), 8.7 in the Northeast (up from 8.0 in March and 6.9 last April), 10.3 in the South (unchanged from March and down from 10.5 in April 2024), and 7.1 in the West (down from 7.4 in March and up from 6.3 last April).
Construction Confidence Index readings for profit margins improved in April to 53.1, up 0.4 from March, while the readings for sales (62.6 to 62.1) and staffing (64.2 to 62.6) levels fell, though the outlook for sales is higher than a year ago. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Nearly 22 percent of contractors had a project delayed or canceled in April due to tariffs, up from 18 percent in March, while 87 percent have been notified of tariff-related materials prices increases,” says ABC chief economist Anirban Basu. “Contractors remain busy despite these headwinds; construction backlog rose in April and is now at the highest level since September 2023. While ABC members remain upbeat about the near-term outlook, the share of respondents that expect their sales to decline over the next six months rose to 19 percent in April, up 6 percentage points since the start of the year.”
