Construction industry leaders were more optimistic in June, 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 above the diffusion index threshold of 50.
In June, ABC’s Construction Confidence Index increased from 53.3 to 53.5 for profit margin expectations; rose from 60.4 to 62.8 for sales expectations; and fell from 61.7 to 59.4 for staffing levels.
Additionally, ABC’s Construction Backlog Indicator rose from 8.4 months in May to 8.7 months in June and increased 0.3 months from June 2024.
“Despite a wide array of headwinds and disappointing construction spending data in recent months, backlog rebounded to 8.7 months in June, the same level as in April,” said ABC Chief Economist Anirban Basu. “The durability of contractor backlog is partially due to the ongoing boom in data center construction; 1 in 7 ABC members is currently under contract to perform work on a data center.
“In addition to longer backlog, contractors remain broadly optimistic, with 3 in 5 contractors expecting their sales to rise during the second half of 2025,” Basu continued. “Notably, this survey predates the most recent trade policy announcements, and 1 in 5 contractors had a project interrupted or paused due to tariffs in June. With some of the newest import taxes putting upward pressure on construction input prices, profit margin expectations may face pressure in the months to come.”
