Construction backlog stable according to ABC

Associated Builders and Contractors (ABC), Washington, has reported that its Construction Backlog Indicator remained unchanged at 8.5 months in September, according to an ABC member survey conducted Sept. 22 to Oct. 6. The reading is down 0.1 months since September 2024.

During the past year, backlog has declined in the commercial and institutional and heavy industrial categories, while it has increased substantially in the infrastructure category, according to ABC’s report.

“Falling industrywide employment, a dearth of job openings and ongoing decreases in construction spending have not diminished ABC contractor member backlog or confidence,” ABC Chief Economist Anirban Basu says. “This stability primarily stems from two sources. First, public sector activity has held up far better than its private counterpart, and that is supporting elevated backlog in the infrastructure category.

“The second source of industry momentum is, unsurprisingly, data centers. Approximately 1 in 5 contractors was under contract to work on a data center project in September. While that’s a slightly lower share than in August, contractors that have data center work had significantly higher backlog (12 months) than those who did not (eight months).”

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