ABC’s Construction Backlog Indicator fell sharply in October as contractors without data center work saw their backlog shrink.
Associated Builders and Contractors (ABC) reported November 10 that its Construction Backlog Indicator fell to 8.1 months in October, according to an ABC member survey conducted October 20 to November 3.
The reading is down 0.6 months from September and 0.3 months from the same time last year.
Backlog in the infrastructure category fell to 8.7 months, the lowest level since May 2025, while heavy industrial backlog rose to its highest level in 15 months.
Chart: Associated Builders and Contractors / abc.org
On ABC’s Construction Confidence Index, the profit margin reading increased, while sales and staffing readings fell. All three remain above 50, signaling expected growth over the next six months.
“Backlog fell sharply in October, returning to levels not consistently observed since last winter,” said ABC Chief Economist Anirban Basu. “This decline was largely due to worsening prospects for the 88% of contractors not under contract to work on data centers, which saw their backlog fall from 8.3 months in September to 7.6 months in October. Contractors with data center work, a majority of which have over $100 million in annual revenues, saw their backlog rise from 11.3 months to 11.5 months.”