Associated Builders and Contractors said its Construction Backlog Indicator climbed to 8.7 months in September, helped by steady data center activity.
The September figure was 0.2 months higher than in August and 0.2 months higher than a year earlier, based on an ABC member survey fielded from Sept. 21 to Oct. 5.
Backlog in the commercial and institutional segment, which had slipped in the middle of 2026, reached its strongest level since July 2025. Heavy industrial backlog dropped to its lowest point since March, though it remained 0.5 months above its year-ago level.
Within ABC’s Construction Confidence Index, the staffing reading rose while the sales and profit margin readings fell, though all three stayed above 50, signaling expected growth.
According to ABC, the 15% of members with data center contracts averaged 11.3 months of backlog, three months more than members without that work.
“At the same time, rising materials and labor and borrowing costs continue to put pressure on contractors,” said Anirban Basu, Chief Economist at Associated Builders and Contractors. “More than 1 in 4 contractors expect their profit margins to contract over the next six months, the highest share since November 2025. Those same cost pressures have suppressed sales expectations, which also fell to an 11-month low in September.”