ABC report shows backlog decline through October

Associated Builders and Contractors’ (ABC) construction backlog indicator fell to 8.4 months in October, according to an ABC member survey conducted Oct. 20 to Nov. 4. The reading is down 0.1 months since September but unchanged from October 2024. 

According to the Washington-based association’s data series, backlog was flat or increased on a monthly basis in each of the three industries considered in this survey.

“Nearly 65 percent of contractors indicated that they think the U.S. construction industry is contracting, according to ABC’s October survey,” ABC Chief Economist Anirban Basu says. “This dismal assessment accompanied the lowest backlog reading since May, and 23 percent of contractors expect their sales to decline over the next six months, the highest share in over a year.”

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

Backlog for respondents that do not primarily operate in any one industry, generally the smallest contractors responding to the survey, fell sharply for the month and stands at just 5.8 months.

“These findings are consistent with an industry that is sustained by still-elevated manufacturing construction and a surging data center sector,” Basu says. “Approximately 1 in 7 contractors are under contract to work on data centers and those contractors have significantly higher backlog (10.9 months) than those that are not (8.0 months).”