ABC Reports Growth in Construction Confidence and Backlog Indicators
Key Highlights
- Construction backlog increased by 0.5 months from February, reaching levels not seen since last summer.
- Profit margin and staffing expectations are at their highest since early 2022, reflecting industry optimism
- Despite rising oil prices due to geopolitical conflicts, contractor confidence remains strong, with positive outlooks for the next six months
WASHINGTON, DC — Associated Builders and Contractors reported on April 14th that its Construction Backlog Indicator rose to 8.6 months in March.
“Backlog has fully rebounded from January’s four-year low and, at 8.6 months, is now back to levels not seen since last summer,” said ABC Chief Economist Anirban Basu. The reading is up 0.5 months from February and up 0.1 months from March 2025.
The Data Center Difference
Backlog was calculated through data gathered in an ABC member survey conducted from March 23 to April 6. The 15% of ABC member contractor respondents under contract to perform work on data centers reported significantly longer backlog (10.6 months) than the 85% of contractors who are not (8.3 months).
ABC’s Construction Confidence Index readings for profit margins and staffing levels also increased in March, while the reading for sales fell. The readings for all three components are higher than they were one year ago and remain above the threshold of 50, indicating expectations for growth over the next six months.
Contractors Remain Optimistic
“Contractors appear unphased by the sharp rise in oil prices precipitated by the conflict in Iran," continued Basu. "Even with the potential for accelerated materials price escalation, profit margin expectations improved to the highest level since February 2025.
“Staffing expectations, up in each of the past four months, are now at the highest level since April 2022. This increase is particularly surprising given that the industry’s hiring rate fell to the lowest level ever recorded in February, although it aligns neatly with the uptick in employment growth observed in the March jobs report.
"Whether or not this optimism proves justified likely depends on how quickly the conflict in Iran resolves; a lengthy dispute will put continued upward pressure on oil prices and borrowing costs.”
View ABC's Construction Backlog Indicator and Construction Confidence Index for March, or view the full Construction Backlog Indicator and Construction Confidence Index data series by visiting abc.org.