Associated Builders and Contractors' Construction Backlog Indicator fell to 8.0 months in July, the lowest level since January and 0.8 months below both the June reading and its level a year ago, according to an ABC member survey. Backlog shrank across every industry, region and company size, and the South is now the only region with more backlog than one year ago.
ABC Chief Economist Anirban Basu said the data center boom "masks the depth of this weakness," as there is little momentum in any other segment. The 88% of ABC contractors not under contract on data center work averaged 7.5 months of backlog, compared with 11.4 months for the 12% who are. Backlog in the $30-$50 million revenue category fell to its lowest level since March 2020.
Sales confidence dropped to 61.2 from 63.6 in June, and staffing expectations edged down to 62.3 from 62.7, while profit margin confidence rose to 52.7 from 52.4. All three components of ABC's Construction Confidence Index held above 50, meaning most contractors still expect growth over the next six months.
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