Associated Builders and Contractors’ Construction Backlog Indicator had its lowest reading since January
Associated Builders and Contractors’ Construction Backlog Indicator declined in July, reaching 8 months, according to the survey recently released by the association. The reading, which was the lowest since January, is down 0.8 months from June as well as year-over-year. Regionally, all areas experienced a decline in backlog month-over-month, with the South having the highest backlog, at 10.1 months.
“Backlog fell sharply in July,” Anirban Basu, chief economist at ABC, said in a statement. “The data center boom masks the depth of this weakness, as there is a lack of momentum in any other segment.”
Large contractors, with revenue greater than $100 million, continue to report the highest backlog, at a rate of 12.1 months in July. While this number is down 0.2 months from both June and July 2025, it remains significantly higher than the 7-month backlog reported by companies with revenue less than $30 million.
“The 88 percent of ABC contractors that are not under contract to work on a data center had an average 7.5 months of backlog. That compares poorly to the 12 percent that are under contract to work on data centers, which have 11.4 months of backlog,” said Basu. “This dynamic has been particularly difficult for small and mid-size contractors. Backlog in the 30 to 50 million annual revenue category, for instance, fell to the lowest level since March 2020.”
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