ABC Reports Rising Construction Backlog, Confidence Slips Slightly
Key Highlights
- Construction backlog increased to 9.1 months in May, the highest in nearly three years, indicating robust project demand
- Most regions experienced backlog growth, except the South, which still holds the longest backlog and saw the largest year-over-year increase
- Contractor confidence remains positive overall, with indices for sales, profits, and staffing levels above 50, signaling expected growth
WASHINGTON, DC — Associated Builders and Contractors reported on June 16 that its Construction Backlog Indicator increased to 9.1 months in May, according to an ABC member survey conducted from May 20 to June 3.
The latest reading is up 0.3 months from April and 0.7 months higher than May 2025, signaling continued project demand and a steady pipeline of work for contractors heading into the summer construction season.
Backlog Expands Across Most Regions
Backlog increased in every region except the South on a monthly basis. Despite the slight decline, the South continues to hold the longest backlog among all regions and posted the largest year-over-year increase.
The latest numbers suggest that contractors across much of the country continue to maintain strong project pipelines, even as market conditions remain uneven across regions.
Contractor Confidence Remains Positive
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all declined in May.
Despite the month-over-month dip, each component remains above the threshold of 50, indicating contractors still expect growth over the next six months.
For construction businesses and specialty contractors, the combination of rising backlog and positive confidence levels points to continued demand, though labor availability, material pricing and economic uncertainty remain key factors to watch.
ABC’s monthly data continues to provide a snapshot of contractor sentiment and the strength of future work across the construction sector.
“Backlog rose to a nearly three-year high in May,” said ABC Chief Economist Anirban Basu. “This increase largely reflects the massive data center investments taking place across the nation, as the 14% of ABC members under contract to work on data centers continue to have much higher backlog (11.6 months) than those that are not (8.6 months). The way this boom is disproportionately benefiting larger contractors helps to explain why contractor confidence slipped in May even as backlog continued to climb.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.