Construction industry leaders were less optimistic in October, according to Associated Builders and Contractors.
Two of the three components of ABC’s Construction Confidence Index fell for the month, but all three were above the diffusion index threshold of 50.
In October, ABC’s Construction Confidence Index decreased from 52.3 to 51.3 for profit margin expectations and from 60.3 to 60.1 for staffing levels. The index was unchanged at 59.6 for sales expectations.
Additionally, ABC’s Construction Backlog Indicator fell from 8.5 months in September to 8.4 months in October and was unchanged compared with October 2024.
“Nearly 65% of contractors indicated that they think the U.S. construction industry is contracting, according to ABC’s October survey,” said ABC Chief Economist Anirban Basu. “This dismal assessment accompanied the lowest backlog reading since May, and 23% of contractors expect their sales to decline over the next six months, the highest share in over a year. These findings are consistent with an industry that is sustained by still-elevated manufacturing construction and a surging data center sector. Approximately 1 in 7 contractors are under contract to work on data centers, and those contractors have significantly higher backlog (10.9 months) than those that are not (8.0 months).”
