Contractor Optimism Grows as ABC’s Backlog Indicator Rebounds in June

Associated Builders and Contractors reported today that its Construction Backlog Indicator rose to 8.7 months in June, according to an ABC member survey conducted June 20 to July 7. The reading is up 0.3 months since June 2024.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

The largest contractors have nearly two months longer backlog than they did one year ago. While the smallest contractors have slightly longer backlog on a year-ago basis, backlog has fallen for contractors with $30-$100 million in annual revenues.

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

“Despite a wide array of headwinds and disappointing construction spending data in recent months, backlog rebounded to 8.7 months in June, the same level as in April,” said ABC Chief Economist Anirban Basu. “The durability of contractor backlog is partially due to the ongoing boom in data center construction; 1 in 7 ABC members is currently under contract to perform work on a data center.

“In addition to longer backlog, contractors remain broadly optimistic, with 3 in 5 contractors expecting their sales to rise during the second half of 2025,” said Basu. “Notably, this survey predates the most recent trade policy announcements, and 1 in 5 contractors had a project interrupted or paused due to tariffs in June. With some of the newest import taxes putting upward pressure on construction input prices, profit margin expectations may face pressure in the months to come.”