ABC’s Construction Backlog Indicator drops in October
Associated Builders and Contractors reported on Tuesday that its Construction Backlog Indicator fell to 8.1 months in October, according to an ABC member survey conducted Oct. 20 to Nov. 3.
The reading is down 0.6 months from September and 0.3 months from the same time last year.
Backlog in the infrastructure category fell to 8.7 months, the lowest level since May 2025, while backlog in the heavy industrial category rose to a 15-month high.
ABC’s Construction Confidence Index reading for profit margins increased in October, while the readings for sales and staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog fell sharply in October, returning to levels not consistently observed since last winter,” said ABC Chief Economist Anirban Basu. “This decline was largely due to worsening prospects for the 88% of contractors not under contract to work on data centers, which saw their backlog fall from 8.3 months in September to 7.6 months in October. Contractors with data center work, a majority of which have over $100 million in annual revenues, saw their backlog rise from 11.3 months to 11.5 months.
“Despite the decline in backlog and worsening sales and staffing expectations, contractor optimism regarding profit margins improved in October,” said Basu. “This is encouraging given recent increases in materials prices and borrowing costs, although it should be noted that roughly 1 in 4 contractors still expect their margins to shrink over the next six months.”
Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
View ABC's Construction Backlog Indicator and Construction Confidence Index for October. View the full Construction Backlog Indicator and Construction Confidence Index data series.
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