Associated Builders and Contractors (ABC) reports its Construction Backlog Indicator rose to 8.7 months in June, according to an ABC member survey conducted June 20 to July 7. The reading is up 0.3 months since June 2024.
The largest contractors have a nearly two-month-longer backlog than they did one year ago. While the smallest contractors have a slightly longer backlog on a year-ago basis, the backlog has fallen for companies with $30-$100 million in annual revenues.
ABC’s Construction Confidence Index reading for sales and profit margins improved in May, while the reading for staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Despite a wide array of headwinds and disappointing construction spending data in recent months, backlog rebounded to 8.7 months in June, the same level as in April,” said ABC chief economist Anirban Basu. “The durability of contractor backlog is partially due to the ongoing boom in data center construction; one in seven ABC members is currently under contract to perform work on a data center.
“In addition to longer backlog, contractors remain broadly optimistic, with three in five contractors expecting their sales to rise during the second half of 2025,” said Basu. “Notably, this survey predates the most recent trade policy announcements, and one in five contractors had a project interrupted or paused due to tariffs in June. With some of the newest import taxes putting upward pressure on construction input prices, profit margin expectations may face pressure in the months to come.”
