Construction Backlog Slips to 8.1 Months as Confidence Remains Expansionary

WASHINGTON, DC — Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in November, based on an ABC member survey conducted from Nov. 20 to Dec. 8.

The November reading reflects a 0.3-month decrease compared to both October 2025 and November 2024, signaling a modest pullback in work under contract.

Backlogs Decline for Most Contractor Sizes

Construction backlogs fell on both a month-over-month and year-over-year basis for every contractor size category except firms with more than $100 million in annual revenues.

The data suggests that smaller and mid-sized contractors are experiencing a more pronounced easing in backlog levels compared to their largest peers.

Confidence Remains Above Growth Threshold

ABC’s Construction Confidence Index reading for sales improved in November, indicating stronger expectations for near-term revenue activity.

However, confidence readings for profit margins and staffing levels declined during the month. Despite the mixed movement, all three components of the index remain above 50, the threshold that signals expectations for growth over the next six months.

Contractors Remain Broadly Optimistic

“Backlog declined sharply in November and is now at the lowest level since February 2024,” said ABC Chief Economist Anirban Basu. “The decline was particularly steep for the smallest contractors; ABC members with under $30 million in annual revenues registered their lowest backlog reading in over four years. Notably, fewer than 6% of those smallest contractors are under contract to work on data center projects, well below the 37% share for contractors with greater than $100 million in annual revenues. 

“Despite the decline in backlog, contractors remain broadly optimistic that their sales and staffing levels will expand over the next six months,” said Basu. “At the same time, just 33.6% of contractors expect their profit margins to expand over the next two quarters, the lowest share in over a year. That likely reflects growing anxiety about materials costs, which have started to rise after several quarters of relative stability.”

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for November, or view the full Construction Backlog Indicator and Construction Confidence Index data series by visiting www.abc.org.