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ABC’s Construction Backlog Indicator Increases, Contractors Remain Confident

The ABC Construction Backlog Indicator is back on the rise, supporting contractors' unwavering confidence.
By ABC
February 13, 2025
Topics
Business

WASHINGTON, Feb. 11—Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.4 months in January, according to an ABC member survey conducted Jan. 21 to Feb. 3. The reading is unchanged from January 2024. 

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for January. View the full Construction Backlog Indicator and Construction Confidence Index data series.

The monthly increase in backlog was concentrated in the Western region, which also exhibited the largest growth in backlog over the past year. The South has the longest backlog of any region despite exhibiting the largest year-over-year decrease.

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

“While backlog has remained within a narrow range over the past year, contractors broadly expect construction activity to pick up over the next six months," said ABC Chief Economist Anirban Basu. “Contractor confidence regarding sales has improved significantly over the past year, with much of that improvement occurring since November’s election. The fact that staffing level expectations remain elevated suggests that job openings, which fell sharply during the final months of 2024, should rebound during the first half of 2025.”

construction backlog indicator graph january 2025

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.

SEE ALSO: TEDDY TOPS OUT: THE THEODORE ROOSEVELT PRESIDENTIAL LIBRARY GETS CLOSER TO COMPLETION

by ABC

Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.

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