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HomeNewsABC’s construction backlog indicator slips in December, contractor confidence remains elevated

ABC’s construction backlog indicator slips in December, contractor confidence remains elevated

WASHINGTON, Jan. 14—Associated Builders and Contractors reported today that its Construction Backlog Indicator inched down to 8.3 months in December, according to an ABC member survey conducted Dec. 20 to Jan. 6. The reading is down 0.3 months from December 2023.

View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for December. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Backlog in the commercial and institutional category has fallen by almost a full month over the past year and is now at the lowest level since February 2023. Backlog in the infrastructure category, on the other hand, currently stands at the highest level since August 2023.

ABC’s Construction Confidence Index readings for sales and staffing levels improved in December, while the reading for profit margins declined. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“While backlog inched lower in December, contractors broadly expect construction activity to pick up in the first half of this year,” said ABC Chief Economist Anirban Basu. “Contractor confidence remained extraordinarily elevated in December, with the share of contractors that expect their sales to increase over the next six months now at the highest level since early 2022. Despite that confidence, the path of interest rates will play a critical role in industry performance in 2025. If rates remain higher for longer, backlog may remain subdued, especially in the struggling commercial and institutional category.”

Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month’s work under contract based on the latest financials available, while CCI measures contractors’ outlook for the next six months. View the methodology for both indicators.


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.

Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 that represents more than 23,000 members. Founded on the merit shop philosophy, ABC and its 67 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.     

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