The construction backlog indicator for builders and associated contractors fell 0.3 month, compared to May, to 8.8 months in June. Year-on-year, the backlog grew by 0.1 month.
“Although the backlog narrowed in June, it is still longer than at any point from September 2023 to April 2026,” ABC chief economist Anirban Basu said in a statement.
By sector, infrastructure projects had the longest backlog at 10.1 months, while heavy industry stood at 9.7 months and commercial and institutional had a backlog of 8.9 months. Regionally, the South had the highest portfolio at 10.3 months, while the West had the lowest at 7.6 months.
When measured by company size, companies with more than $100 million in revenue had the longest backlog at 12.3 months. Basu attributed this to the steady growth of data center work. “The 13% of ABC members under contract to work in data centers have significantly higher backlog [11.0 months] than the 87% who are not [8.5 months]” he said. “This trend is a notable headwind for smaller contractors: Only 8 percent of contractors with less than $100 million in annual revenue have data center work under contract, well below the 41 percent share of contractors with more than $100 million in annual revenue.”
ABC’s construction confidence index indicates rising material prices may be weighing on contractor confidence as the profit margin index falls to a “seven-month low”. However, Basu said, “expectations remain above the prevailing level from the second half of 2025.”
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