By NOLAN POINTER

WASHINGTON, D.C. – Associated Builders and Contractors reports that its Construction Backlog Indicator rose to 8.6 months in March, according to an ABC member survey conducted March 23 to April 6.

The reading is up 0.5 months from February and up 0.1 months from March 2025.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

The 15 percent of ABC member contractor respondents under contract to perform work on data centers had significantly longer backlog (10.6 months) than the 85 percent of contractors who are not (8.3 months).

ABC’s Construction Confidence Index readings for profit margins and staffing levels increased in March, while the reading for sales fell. The readings for all three components are higher than they were one year ago and remain above the threshold of 50, indicating expectations for growth over the next six months.

“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,” said Basu. “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.”