Associated Builders and Contractors’ Construction Backlog Indicator fell to 8.8 months in June, down 0.3 months from May but up 0.1 months from June 2025, according to an ABC member survey conducted June 22-July 8.
Only the Middle States region posted monthly backlog growth, while the Northeast experienced a sharp decline and now sits more than a month below its year-ago level.
Despite the dip, contractors remain optimistic. ABC’s Construction Confidence Index readings for sales and staffing increased, while the profit-margin reading edged lower. All three remained above 50, signaling expectations for growth during the next six months.
ABC Chief Economist Anirban Basu attributed the industry’s sustained backlog strength to booming data center construction. Contractors with data center work reported a backlog of 11 months, compared with 8.5 months for those without it. Basu said rising input prices may be pressuring profitability, with margin confidence falling to a seven-month low.
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