Contractors remained optimistic in March

Construction industry leaders remained optimistic in March, according to Associated Builders and Contractors.

Two of the three components of ABC’s Construction Confidence Index rose for the month and all three were up year over year.

In March, ABC’s Construction Confidence Index increased from 63 to 64.3 for staffing levels and from 52.9 to 53.6 for profit margin expectations. The index decreased from 65.8 to 64.7 for sales expectations.

Additionally, ABC’s Construction Backlog Indicator rose from 8.1 months in February to 8.6 months in March and was up 0.1 months compared with March 2025.

“Backlog has fully rebounded from January’s four-year low and, at 8.6 months, is now back to levels not seen since last summer,” said ABC Chief Economist Anirban Basu. “Contractors appear unphased by the sharp rise in oil prices precipitated by the conflict in Iran. Even with the potential for accelerated materials price escalation, profit margin expectations improved to the highest level since February 2025.

“Staffing expectations, up in each of the past four months, are now at the highest level since April 2022,” Basu continued. “This increase is particularly surprising given that the industry’s hiring rate fell to the lowest level ever recorded in February, although it aligns neatly with the uptick in employment growth observed in the March jobs report. Whether or not this optimism proves justified likely depends on how quickly the conflict in Iran resolves; a lengthy dispute will put continued upward pressure on oil prices and borrowing costs.”