Associated Builders and Contractors’ Construction Backlog Indicator increased to 8.7 months in September, according to an ABC member survey conducted Sept. 21 to Oct. 5. The reading is up 0.2 months on both a monthly and yearly basis.
Commercial and institutional backlog, which dipped in the middle of 2026, rose to the highest level since July 2025. Heavy industrial backlog, while still up 0.5 months over the past year, fell to its lowest level since March.
ABC’s Construction Confidence Index reading for staffing increased in September, while the readings for sales and profit margins fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog increased for the second straight month in September as data center work continues to keep contractors busy,” said ABC Chief Economist Anirban Basu. “The 15% of ABC members under contract to work on data centers averaged 11.3 months of backlog in September, a full three months more than ABC members that are not. This disproportionately benefits the largest contractors—39% of contractors with greater than $100 million in annual revenues have data center work right now, compared to just one in 10 contractors with fewer than $100 million in annual revenues.
“At the same time, rising materials and labor and borrowing costs continue to put pressure on contractors,” Basu added. “More than one in four 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.”
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.
About Associated Builders and Contractors
Associated Builders and Contractors (ABC) is a national construction industry trade association established in 1950 with 67 chapters and 24,000 members. Founded on the merit-shop philosophy, ABC helps members offer a robust employee value proposition, 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.
 Construction Backlog Indicator increased to 8.7 months in September, with the commercial and institutional backlog reaching its highest level since July 2025 while the heavy industrial backlog fell to its lowest level since March.){kind=link}