Associated Builders and Contractors’ Construction Backlog Indicator fell to 8.5 months in August, down 0.2 months since July and up 0.3 months since August 2024.
The monthly decline in backlog was solely due to contractors with annual revenues under $30 million. Backlog increased for ABC's largest contractors over the past three months.
“About one in four contractors reported having a project delayed or canceled due to tariffs,” ABC Chief Economist Anirban Basu said in a statement. “While that is relatively stable from July, a similar share reported project delays or cancellations due to lack of funding and labor force issues. While contractor confidence was stable for the month, it will be interesting to see how long this optimism persists if the myriad headwinds facing the industry remain in place.”
ABC’s Construction Confidence Index reading for sales was unchanged in August. The reading for staffing declined, while the reading for profit margins increased. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
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