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Business | Contracting

ABC’s Construction Backlog Indicator Increases, Contractors Remain Confident

by Associated Builders and Contractors on February 12, 2025

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 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.”

Topics: Business, Contracting
Backlog, Construction

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